✅ November 28 Main "New" Regulations / Official Position

• On November 28, 2025, the PBOC convened a meeting of multiple departments including the Ministry of Public Security, the Central Cyberspace Affairs Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange to discuss the "Coordination Mechanism Meeting for Combating Virtual Currency Trading Speculation".

• The meeting reiterated that since 2021, China has established a prohibitive policy framework against virtual currency trading/speculation. The meeting pointed out that recently, speculation/speculation on virtual currencies has "risen" again, with some illegal activities showing signs of resurgence.

• Officials emphasized that virtual currencies (including so-called "stablecoins") do not have the same legal status as fiat currencies, lack legal tender status, and should not, and cannot, be used as currency for market circulation or trading.

• Any business activities related to virtual currencies are regarded as "illegal financial activities".

• There is particular concern about stablecoins. The meeting noted that there are significant deficiencies in customer identity verification (KYC), anti-money laundering (AML), and other areas concerning stablecoins, making them susceptible to illegal uses such as money laundering, fraud, and unlawful cross-border fund transfers.

• In terms of implementation — regulatory authorities will strengthen monitoring and control over key links of "fund flow + information flow + data flow", enhance inter-departmental cooperation, and continue to block and combat all illegal transactions/speculation/payment/cross-border transfer channels related to virtual currencies.

In summary: The current regulatory stance in mainland China is based on "comprehensive prohibition + high-pressure crackdown + multi-department collaboration + strict enforcement" — virtual currencies do not possess legal currency status in the mainland, and any transactions, payments, speculation, cross-border transfers, or use of stablecoins may be deemed illegal financial activities.

🔎 Impact on Regular Contract Traders / Spot Traders:

For those sitting overseas and using foreign platforms (e.g., you as a cryptocurrency trader), especially those engaged in contract trading and spot trading, the recent official reiteration and intensified crackdown may bring significant impacts/risks including:

• Mainland users, or users attempting to deposit/withdraw funds through mainland banks/payment systems — extremely high risk.