The policy has always been consistent! The regulation clearly maintains a prohibitive policy towards virtual currency-related business activities

On February 6, the People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the Financial Regulatory Bureau, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" (hereinafter referred to as the "Notice"). This "Notice" is a further continuation and improvement of the "Notice on Further Preventing and Handling Risks of Virtual Currency Trading Speculation" issued in 2021 (hereinafter referred to as "Document No. 237").

For a long time, China has maintained a prohibitive policy on virtual currency-related business activities, and this position has been consistent.

Reporters from the Financial Times have summarized the evolution of policies related to virtual currencies.

In 2013, when speculation on Bitcoin began both domestically and internationally, the People's Bank of China and four other departments jointly issued the "Notice on Preventing Bitcoin Risks," clearly stating that Bitcoin is a type of virtual commodity and not currency, prohibiting financial institutions from conducting related businesses, effectively blocking the transmission of risks to the financial sector.

In 2017, with the prevalence of token issuance financing and speculative trading, the People's Bank of China and seven other departments jointly issued the "Announcement on Preventing Token Issuance Financing," guiding local authorities to investigate and clean up various virtual currency trading and token issuance financing platforms within the country, effectively curbing the speculation surrounding token issuance financing.

In 2021, as speculation in virtual currency trading rose again, the People's Bank of China and ten other departments jointly issued the "Notice on Further Preventing and Handling Risks of Virtual Currency Trading Speculation," further clarifying that Bitcoin, Ethereum, and stablecoins such as Tether do not have the same legal status as legal tender, and conducting virtual currency-related business activities within the country is considered illegal financial activity, which is strictly prohibited. A coordination mechanism for combating virtual currency trading speculation was established to continuously clean up and rectify the chaos surrounding virtual currencies, effectively protecting public property safety and maintaining economic financial order and social stability.

In 2025, influenced by various factors, speculation in virtual currency trading rose again, and related illegal activities occurred from time to time. On November 28, 2025, the People's Bank of China, the Ministry of Public Security, and thirteen other departments held a meeting of the coordination mechanism for combating virtual currency trading speculation, reiterating the firm stance against virtual currency trading speculation and rectifying the chaos surrounding virtual currencies. The meeting emphasized that virtual currencies do not have the same legal status as legal tender, do not have legal compensation, and should not and cannot be circulated as currency in the market. Virtual currency-related business activities are considered illegal financial activities. Stablecoins are a form of virtual currency that currently cannot effectively meet customer identification, anti-money laundering, and other requirements, posing risks of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers.

On December 5, 2025, the China Internet Finance Association and seven other associations issued a "Risk Warning on Preventing Illegal Activities Related to Virtual Currencies," further clarifying that virtual currencies and related business activities involving real-world assets (RWA) are considered illegal financial activities and warning the public of the risks The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk