- The People’s Bank of China holds a high-level meeting to reinforce earlier crypto restrictions, focusing on stablecoins.
- Stablecoins aid illegal currency exchange.
- Hong Kong maintains an open crypto policy.
On November 28, 2025, the People’s Bank of China held a meeting in Beijing with over ten departments to intensify its crackdown on virtual currency trading, emphasizing stablecoin regulations.
This meeting underscores China’s continued stringent stance against virtual currencies and stablecoins, potentially impacting trading practices and regulatory approaches within the region.
China Strengthens Control on Stablecoins Amidst Latest Cryptocurrency Ban
The PBOC reaffirms its position against virtual currencies, aiming for comprehensive enforcement against crypto-related financial breaches. This significant collaboration involved the Ministry of Public Security, the Central Cyberspace Affairs Commission, among others. The focus remains on eliminating activities involving stablecoins, which officials deem as channels for illegal foreign exchange and money laundering.
According to a report by China’s Central Bank Steps Up Regulation of Virtual Currencies, financial activities involving virtual currencies are to be classified as illegal operations within mainland China. Stablecoins, notably USDT and USDC, have been highlighted for facilitating breaches of stringent capital outflow regulations.
Regulatory Tightening Spurs Cross-Border Crypto Shift
Did you know? China has historically imposed strict regulations on virtual currencies, impacting market dynamics and trading activities significantly.
The latest PBOC meeting echoes policy actions from 2021 that emphasized halting all virtual currency trading. Such continued prohibitive measures historically suppress market activity and liquidity within China’s jurisdiction.
Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 06:15 UTC on December 1, 2025. Source: CoinMarketCapAccording to CoinMarketCap, Tether USDt (USDT) remains priced at $1.00. With a market cap of $184.63 billion and dominance of 6.30%, this stablecoin experienced a 64.35% change in its 24-hour trading volume of $91.26 billion. Price adjustments over 30 days show a 0.06% increase.
The Coincu research team anticipates that strict regulations may prompt further exodus of cryptocurrency activities towards Hong Kong. Such regulatory developments are likely to foster a more robust parallel market, despite official barriers, driven by technological advancements within the crypto space.
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Source: https://coincu.com/news/china-crackdown-stablecoins-regulation/
