China Reaffirms Ban on Crypto and Stablecoin Trading as Financial Risks Rise
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China has once again emphasized that trading cryptocurrencies is illegal and highly risky. On November 28, 2025, the People’s Bank of China held a meeting with several government agencies, including the Ministry of Public Security and the Cyberspace Administration. The main focus of the meeting was the recent increase in cryptocurrency trading across the country, and authorities made it clear that all crypto activities are strictly banned.
China’s PBOC has reaffirmed that virtual assets — including stablecoins — are not legal tender, and any related trading or issuance activities remain illegal.
The decision is based on strict concerns over KYC compliance, AML risks, and uncontrolled cross-border fund movements.… pic.twitter.com/HNXmIogffg— 𝙼𝚊𝚗𝚜𝚒𝚗𝚐𝚑 𝚁𝚊𝚓𝚙𝚞𝚝 (@Mansingh_1B) November 29, 2025
Officials explained that cryptocurrencies, including stablecoins, are not considered real money and cannot be legally used. Stablecoins were specifically highlighted as particularly risky because they can be misused for illegal activities such as money laundering, fraud, and transferring money abroad illegally.
To protect the public and prevent financial crimes, regulators called for strict enforcement of the ban. They urged all government agencies to work together closely to stop illegal crypto activities and safeguard people’s money.
Regulatory Measures and Public Awareness
Apart from this, authorities stressed that individuals and institutions involved in cryptocurrency trading could face severe penalties. In fact, China has consistently targeted online platforms and services facilitating crypto transactions, signaling that the crackdown is unlikely to ease anytime soon.
Moreover, authorities want people to understand the dangers of cryptocurrencies. Rapid trading and speculation could harm the financial system. Thus, everyone is advised to stay away from crypto trading and report any suspicious activity.
In contrast to countries where crypto trading is legal, China continues to prioritize financial security over speculative investment. Consequently, authorities are expected to maintain close monitoring and take further action if needed to curb illegal activity and protect the country’s financial system.
Impact of China’s Ban on the Cryptocurrency Market
This news is likely to keep cryptocurrency markets under pressure, especially in Asia. Traders may avoid Chinese platforms, reducing demand and liquidity. Stablecoins could face increased scrutiny globally, while investor confidence in crypto may weaken. As a result, prices of major cryptocurrencies like Bitcoin and Ethereum could see short-term declines.
