Is the new round of cryptocurrency crackdown led by the central bank a negative or positive?

The new round of "crackdown on cryptocurrency trading speculation" initiated by the central bank and jointly launched by thirteen departments marks the entry of China's regulation on virtual currencies into a stage of systematic strengthening, and the coordination of multiple departments itself releases a clear signal of taking serious action.

This rectification focuses on full-chain control, comprehensively compressing the survival space of virtual currencies within the country from four core links: payment, accounts, transaction links, and capital flows. Specifically, financial institutions are strictly prohibited from providing related services, the blocking of payment channels continues to intensify, and bank accounts involved in cryptocurrencies will face freezing and investigation, which significantly increases the difficulty for individual speculators and further squeezes the survival space of gray trading channels.

From the perspective of short-term market impact, this policy is typically negative, and is expected to trigger panic selling and risk-averse behavior in the market. Price declines are driven more by emotions than by changes in fundamentals and may be accompanied by shrinking trading volumes and deep corrections in altcoins, while domestic retail participation declines, and market liquidity may further migrate overseas.

From a global perspective, this rectification actually accelerates the structural differentiation of the global crypto market. While China strengthens its controls, the European and American markets show an open trend, and the demand and liquidity after the retreat of the domestic market are gradually shifting to compliant overseas markets. In the long term, the core support for future cryptocurrency prices will shift from domestic retail funds to international capital, ETF products, institutional allocations, compliant exchanges, and real application ecosystems.