The People’s Bank of China (PBoC) held a major meeting on November 28, 2025, to strengthen the national coordination mechanism against virtual currency transactions, speculation, and related financial risks. The meeting brought together China’s top regulatory, judicial, and enforcement agencies.
Who Attended the Meeting?
The meeting included representatives from:
- People’s Bank of China (PBoC)
- Ministry of Public Security
- Cyberspace Administration of China
- Central Finance Office
- Supreme People’s Court
- Supreme People’s Procuratorate
- National Development and Reform Commission (NDRC)
- Ministry of Industry and Information Technology (MIIT)
- Ministry of Justice
- State Administration for Market Regulation
- National Administration of Financial Regulation (NAFR)
- China Securities Regulatory Commission (CSRC)
- State Administration of Foreign Exchange (SAFE)
Why Was the Meeting Held?
According to PBoC, virtual currency speculation has risen recently due to multiple domestic and global factors. This has led to an increase in:
- Illegal trading activities
- Financial crimes involving crypto
- Cross-border fund transfers using digital assets
The authorities stated that existing efforts—guided by the 2021 notice on preventing virtual currency risks—have achieved strong results, but new risk patterns require stricter action.
Is Virtual Currency Legal in China?
No. The meeting reaffirmed that China does not recognize virtual currencies as legal tender or legal financial instruments.
Key clarifications:
- Virtual currency has no legal status equal to fiat currency.
- It cannot and should not be used as a form of market payment.
- All crypto-related business activities are considered illegal financial activities in China.
What About Stablecoins?
The meeting identified stablecoins as a type of virtual currency that still poses major regulatory risks. Authorities noted that stablecoins currently fail to meet China’s requirements on:
- Customer identification (KYC)
- Anti-money laundering (AML)
- Counter-terrorism financing (CTF)
Regulators warned that stablecoins may be used for:
- Money laundering
- Fund-raising fraud
- Illegal cross-border fund transfers
- Other criminal activities
China’s Bitcoin Holdings Estimate (Nov 29, 2025)
China is estimated to hold around 190,000 BTC, valued at roughly $17.18 billion as of November 29, 2025. These holdings come largely from past law-enforcement seizures, making China one of the largest state-level Bitcoin holders in the world.
What Actions Will China Take?
The PBoC and related agencies emphasized the need to:
- Strengthen monitoring of virtual currency activities
- Increase enforcement against illegal crypto transactions
- Prevent financial risks from spreading into the real economy
- Maintain strict prohibition on virtual currency-related businesses
Summary: What This Means
This meeting confirms that China will continue its zero-tolerance policy toward virtual currencies. Regulators see crypto and stablecoins as high-risk assets that threaten financial stability, consumer safety, and cross-border capital control. The country will expand enforcement efforts and close any loopholes used for speculation or illegal financing.
