The People's Bank of China announced a "joint action to combat speculation in Crypto Assets trading": stablecoins and other activities are considered illegal financial activities.

China escalates its crackdown on stablecoins, cryptocurrencies, bitcoin… The People's Bank of China led 13 official departments to block “capital flight”. (Synopsis: China's central bank governor Pan Gongsheng: Insist on cracking down on cryptocurrencies!) Stablecoins are still in the early stages of development, pushing for the development of digital yuan) (Background supplement: China's encryption ban expired? Reuters: Bitcoin mining power climbs to 14%, returning to the world's third-largest mining country) China's crypto community is dancing, the official is building walls, on November 29, the headquarters of the People's Bank of China once again announced the major news of cracking down on virtual currencies (cryptocurrencies), announcing that more than a dozen ministries will participate in a closed-door meeting, announcing that the crypto ban established in 2021 will not only take effect as usual, but will be further tightened. In the face of the warming attitude of the United States towards crypto assets after Trump's return to the White House, Beijing chose to build a wall inward, for the clear reason that capital cannot flow out. Crackdown and escalation, old ban meets new challenges The official named the operation “Coordination Mechanism for Cracking Down on Virtual Currency Trading Speculation”. The People's Bank of China led the relevant responsible units of the Ministry of Security, the Cyberspace Administration of the Central Committee, the Central Financial Office, the Supreme People's Court, the Supreme People's Procuratorate, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Justice, the People's Bank of China, the State Administration for Market Regulation, the State Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange to attend the meeting. This reflects the anxiety of Chinese regulators about the “resurgence” of cryptocurrencies, and according to an analysis of China's cryptocurrency crackdown and its global market impact, over-the-counter (OTC) and cross-border money laundering have continued to emerge in the past four years, making the official determination that the original restrictions still need to be strengthened. The joint action description, which covers the parallel flow of funds, law enforcement and information control, shows that China's prevention of private use of cryptocurrencies has been regarded as a “financial defense war”. Stablecoins become the first target The focus of the first blow falls on USD-denominated stablecoins such as Tether (USDT). For Chinese regulators, such tokens are like cash cloaked in blockchain technology, which can directly bypass the foreign exchange settlement system and open a high-speed channel for flight capital. Pan Gongsheng, governor of the People's Bank of China, bluntly stated at the opening ceremony of the 2025 Financial Street Forum Annual Conference in October that stablecoins lack a comprehensive anti-money laundering mechanism and are easily used by criminal groups. As early as this year, a Beijing court ruled a RMB 166 million money laundering case in which the defendant transferred the funds abroad through USDT. For exporters and asset hedgers, stablecoins have become a direct channel and have also touched the red line of the authorities to maintain foreign exchange stability. Domestic congestion prevention, Hong Kong trial Beijing also simultaneously implemented RMB-denominated stablecoins and digital yuan (e-CNY), trying to squeeze underground market space with supervisable official products, while Hong Kong in the south is moving towards “controlled opening”. Hong Kong's Stablecoin Issuers Regulations, which went on the road in August, allow licensed institutions to operate in sandboxes. Taking two paths at the same time seems a bit contradictory, but it is actually precision isolation. Maintaining high pressure onshore and limited testing overseas not only allows RMB to participate in global settlement through offshore sites, but also ensures that risks do not return. At least in terms of the widespread use of fintech, China does not intend to let other countries take the lead. Monetary Sovereignty Game Zoom out the camera and the background is the Trump administration's crypto-friendly “second presidency.” Washington's policy shift has given the dollar the opportunity to use cryptocurrencies as a channel to accelerate global circulation, while Beijing has responded by consolidating its ultimate control over the issuance and flow of money. If stablecoins are rampant within borders, it means that the country loses the initiative over highly liquid capital and books. The Chinese authorities want bitcoin, cryptocurrency, but the core of regulation has never been bitcoin rise and fall, but who has the power to issue money and liquidate. Chinese crypto investors are once again reminded that the wall is still there, and it will only get thicker in the short term. Related reports The other side of the AI boom in the United States: “work” for Chinese bitcoin miners Bloomberg: Trump intends to open up the sale of Huida H200 chips to China, the latest achievement of “technology for minerals” between the United States and China? “The People's Bank of China Announces 'Cracking Down on Cryptocurrency Trading Speculation' Great Joint Action: Stablecoins and Other Illegal Financial Activities” This article was first published in BlockTempo's “Dynamic Trend - The Most Influential Blockchain News Media”.