China’s PBOC Declares Virtual Assets Hold Zero Legal Standing - Crypto Markets Unfazed

Beijing draws regulatory line in digital sand

The People's Bank of China just dropped another regulatory hammer on virtual assets, declaring they possess absolutely no legal status within the nation's financial ecosystem. Same old song, different verse from the world's second-largest economy.

Market Reaction: Collective Shoulder Shrug

Meanwhile, Bitcoin continues trading like it didn't get the memo—proving once again that decentralized networks operate on different rules than centralized banking systems. The PBOC's warning lands with all the impact of a feather against blockchain's concrete foundation.

Global crypto adoption marches forward while traditional finance plays regulatory whack-a-mole. Because nothing says 'stable monetary policy' like banning innovation while your citizens find creative ways to bypass capital controls.

China has once again tightened its crackdown on crypto after a major meeting on November 28, 2025. The People’s Bank of China (PBOC) clearly stated that VIRTUAL assets, including stablecoins, have no legal status and cannot be used as money. With crypto activity rising again, officials are warning about illegal trading, scams, and money moving secretly across borders.

China Holds High-Level Meeting to Combat Crypto Speculation

On November 28, China’s central bank hosted a large coordination meeting with the top ten major government bodies 

Chinese officials said that crypto speculation is rising once more, mainly driven by global price jumps and hype spreading fast on social platforms. 

With this comeback, regulators have noticed several warning signs, like new illegal fundraising activities, cross-border crypto money transfers, and more fraud cases linked to stablecoins. 

Authorities also reported that many users are secretly bypassing capital controls through digital assets. Because of these growing risks, China believes strong action is needed before the situation becomes harder to handle.

On Nov. 28, China’s central bank (PBOC) convened a coordination meeting and reiterated that: Virtual assets do not have the same legal status as fiat, are not legal tender, and must not be used as currency in market circulation; related business activities constitute illegal…

PBOC Repeats: Virtual Assets Are Illegal Financial Activity

According to officials, while earlier crackdowns since 2021 were “effective,” crypto trading and speculation have recently resurfaced due to rising global prices and new market trends.

• Virtual assets are not legal currency and cannot be used in the market.
• Any business involving crypto trading is an illegal financial activity.

Stablecoins Under Deep Scrutiny

A major focus of the meeting was stablecoins, which PBOC officials called just another FORM of virtual asset that fails to meet KYC or anti-money-laundering standards.

Officials warned that stablecoins in particular can be easily misused for underground payments, fraud, and illegal cross-border transfers. The message was clear, crypto will remain strictly prohibited in the mainland.

China’s Key Plans To Combat This

China told all departments to keep blocking access to crypto trading channels and improve monitoring of both data and money movements. 

Authorities will boost information-sharing across agencies so they can quickly act against illegal crypto activity and protect citizens from scams. The main goal remains unchanged, to avoid financial instability. 

Officials said crypto risks are a “long-term challenge,” and the only way forward is continued strict enforcement.