PBOC Holds Coordination Meeting on Cryptocurrency Regulation

The People's Bank of China (PBOC) unequivocally reiterated its prohibitory stance towards cryptocurrencies during a coordination meeting held on November 28, 2025. This meeting brought together high-level representatives from key governmental bodies, including the Ministry of Public Security, the Cyberspace Administration, the Supreme People's Court, the Supreme People's Procuratorate, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Justice, the PBOC, the State Administration of Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange.

Cryptocurrencies Deemed Illicit Financial Activities

During the meeting, the PBOC emphasized that cryptocurrencies do not possess the same legal status as fiat money, are not recognized as legal tender, and therefore cannot be utilized as currency within the market. The bank officially classified all activities associated with crypto assets as illicit financial activities. Furthermore, stablecoins were also categorized as virtual assets, presenting significant risks due to their current failure to comply with customer identity verification (KYC) and anti-money laundering (AML) requirements. The identified risks associated with these virtual assets include money laundering, fraudulent fundraising, and illegal cross-border money transfers.

Resurgence of Crypto Speculation and Illegal Activities

Officials at the coordination meeting observed a recent increase in cryptocurrency speculation, which has consequently led to a rise in illegal activities. While acknowledging that the comprehensive regulation implemented in 2021, which strictly prohibited cryptocurrency trading and speculation, achieved significant results, it was noted that new market dynamics have contributed to a renewed increase in risks.

Commitment to Strict Prohibition and Risk Control

The PBOC declared that the prevention and control of financial risks are a "permanent duty," and China is committed to maintaining its stringent prohibition of virtual currencies. The bank urged all relevant institutions to enhance their monitoring mechanisms, focusing on information and fund flows. This includes increasing information sharing, refining oversight frameworks, and implementing robust measures to combat illegal activities effectively.