2026: Virtual Currency Legislation Enters Countdown, Signaling Major Transformation

The recently concluded Central Political and Legal Work Conference sent a key signal: virtual currency legislation is truly on its way.

Unlike previous years, the significant conference at the start of 2026 for the first time listed "virtual currency" alongside autonomous driving and low-altitude economy, explicitly proposing to conduct "forward-looking legislative research." This means that virtual currency is no longer a marginal issue but a key compliance area at the national level.

Why now?
Because the situation can no longer wait.

On one hand, cases and disputes related to virtual currencies are surging, but legal grounds are vague, leading many victims to be unable to report crimes or obtain judgments. Underground trading remains rampant, and black industries such as scams and money laundering are becoming more covert with blockchain technology, forcing regulators to shift from "blanket bans" to "refined governance."

On the other hand, global Web3 competition is becoming increasingly fierce. The US, Japan, Singapore, and others have established corresponding regulatory frameworks, and Hong Kong is steadily advancing stablecoin regulation. If our country continues to stay at the "total ban" stage, it will not only miss the window for technological innovation but also risk losing influence in the emerging digital economy.

So, does legislation mean "free trading"?
Not at all.

The core of this legislation is to "define boundaries," not to "fully open up." It is expected to first clarify the legal status of virtual currencies as "virtual property," which implies:

· Personal holdings of virtual currencies are protected by law, and victims can report theft or scams;
· But virtual currencies do not have the status of legal tender and cannot be used for daily payments and circulation.

At the same time, efforts to crack down on illegal financial activities will be more severe. Using virtual currencies for illegal fundraising, cross-border money laundering, or evading foreign exchange controls will face more precise and stronger law enforcement.

What should ordinary people do?

· If you hold virtual currencies: Be sure to keep key evidence such as wallet addresses, transaction hashes, and communication records. These will be important for rights protection if your rights are harmed.
· If you are considering investing: Be aware of the risks. Legislation does not change the high volatility of virtual currencies, nor does it mean "guaranteed profits." Stay away from all "high-yield projects" suspected of pyramid schemes or illegal fundraising.
· If you work in the industry: It is recommended to transition to compliant operations as early as possible. In the future, only two types of tracks are worth focusing on: one is the compliant application of blockchain technology in real scenarios; the other is professional services around virtual currency, such as legal, auditing, and asset disposal.

After legislation, what kind of regulatory system will be formed?
Based on international experience and domestic realities, three major trends are expected:

1. Negative list management: Clearly listing prohibited activities such as ICOs, illegal trading platforms, and cross-border money laundering, reducing compliance costs and making violations easier to detect.
2. Establishing asset disposal mechanisms: Virtual currencies seized by police may be liquidated through compliant channels and lawfully returned to victims, forming a standardized process.
3. Strengthening international cooperation: Collaborating with international organizations and other countries to share on-chain data, jointly combat cross-border crimes, and prevent regulatory arbitrage.

In 2026, the era of "barbaric growth" of virtual currencies will come to an end, and a "rule of law" era is beginning. For enterprises and individuals truly rooted in technology and compliant operations, this may be an unprecedented opportunity.

Only those who adapt to the rules can move toward the next future.