China’s PBOC Reiterates Crackdown on Crypto, Denies Legal Status to Virtual Assets
China has escalated its regulatory assault on cryptocurrencies following a high-level meeting convened by the People’s Bank of China (PBOC) on November 28, 2025. The central bank explicitly declared that VIRTUAL assets—including stablecoins—lack legal standing and cannot function as currency. Authorities highlighted a resurgence in crypto speculation, driven by global price rallies and social media hype, alongside a spike in illicit activities such as cross-border money transfers and fraudulent schemes.
Regulators identified new risks, including circumvention of capital controls through digital assets. The PBOC’s coordination meeting with ten government bodies underscored the urgency of preemptive measures to curb what it termed illegal business activities. The MOVE signals China’s unwavering stance against crypto’s integration into its financial system, even as global adoption grows.
