China's Intensified Crypto Ban
Regulatory Reinforcement
On November 28, 2025, the People’s Bank of China (PBOC) led a significant meeting that reiterated that virtual assets, including stablecoins, lack legal status in China and cannot be used as currency. This session involved high-level coordination with various government bodies.
"Virtual assets, including stablecoins, have no legal status in China and cannot be used as currency" - People’s Bank of China (PBOC)
Key participants in the meeting included the PBOC and agencies such as the Ministry of Public Security and the Cyberspace Administration. The session reinforced stringent measures against illegal fundraising and cross-border crypto transfers, with a particular emphasis on stablecoins due to their compliance issues.
Impact on Crypto Markets
The immediate outcome of the meeting indicated an intensified crackdown on crypto trading channels, which is expected to impact anti-money laundering efforts. Metrics may signify downtrends in onshore Decentralized Finance (DeFi) activities and liquidity as a result of reduced trading and stricter enforcement measures. While the risks associated with stablecoins were specifically highlighted, broader crypto assets like Bitcoin and Ethereum were implicitly affected. This move is consistent with China's ongoing agenda to curb illegal crypto activities, trading, and speculative behaviors.
Global Implications
High-profile crypto leaders have not yet commented on the recent regulatory stance. The PBOC's consistent messaging may influence international market sentiment, potentially dampening engagement within Chinese crypto projects. The PBOC's decision could lead to long-term financial retraction from Chinese markets, and historical patterns suggest further cryptocurrency outflows. Potential shifts in global crypto landscapes are conceivable, as past crackdowns have reflected decreased miner activities and exchange closures.