Advertise
- Rizwan AnsariRizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Nov 29, 2025 09:29 UTC
-
China’s PBOC Warns Virtual Assets Hold “No Legal Status”
China says virtual assets have no legal status, warning citizens against crypto usage everywhere.
PBOC declares all crypto trading activities illegal, stressing long-term threats to financial stability.
Government agencies unite to monitor data movement, block trading channels, and protect households nationwide.
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.
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.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
China is tightening its crypto rules because trading, scams, and cross-border transfers are rising again due to global price jumps.
No. China says all virtual asset trading is illegal, and digital coins, including stablecoins, have no legal status as money.
Officials warn that growing crypto use fuels scams, capital control bypassing, and financial instability, making strict enforcement necessary.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
