The People’s Bank of China convened top government bodies on November 28, 2025, in Beijing to address escalating cryptocurrency risks, emphasizing the need for tighter regulations.
China remains firm against cryptocurrency activities to safeguard financial stability, despite global crypto growth, contrasting with Hong Kong’s regulated approach. Potential impacts on illicit speculation and cross-border capital flow are observed.
The People’s Bank of China (PBOC) targets stablecoins and cross-border crypto risks. On November 28, 2025, the PBOC convened with top government bodies to address rising crypto risks. The meeting pledged stricter enforcement to mitigate financial instability. Stablecoins and illicit cross-border activities remain focal points in the renewed clampdown.
The PBOC has historically been central to China’s crypto regulations, reaffirming that virtual assets lack legal status. Stablecoins are under increased scrutiny due to fraud concerns. This move reinforces compliance measures initiated since the 2021 comprehensive ban.
Virtual assets, including stablecoins, have no legal status and cannot be used as money… All such activities are illegal financial activities and must be strictly controlled to protect financial stability – People’s Bank of China (PBOC).
Crypto Innovation Stifled by Enhanced Regulations
The PBOC’s reminder of the illegal status of crypto seeks to thwart fraud and capital flight. This clampdown affects all cryptocurrencies, raising concerns around technological innovation. Hong Kong continues regulated digital asset progress, contrasting Beijing’s harsher stance.
Analysts predict heightened regulation could stifle crypto innovation in Mainland China. Historical trends suggest similar bans lead to relocation of crypto ventures to more welcoming markets. Observations highlight a shift in developer activity towards regions with clearer regulations.
From 2017 ICO Ban to Current Crackdown
China’s aggressive crypto approach follows the 2017 ICO ban and 2021 trading prohibitions. These led to mining exodus and halted exchange operations. Experts suggest similar current impacts on market dynamics and relocation trends for crypto businesses.
Experts from Kanalcoin note potential slowdown in innovation in regions under China’s jurisdiction. Historical data shows compliance with aggressive enforcement may push crypto projects to countries with friendlier legislation. Outcomes could align with past shifts post-regulatory moves.
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