Virtual Money is not currency and is not allowed to circulate domestically.

It means:
Don't think that the domestic market will be unblocked; it's impossible in the short term. Because once it is released, it opens the door for capital outflow. So this is to tell everyone: "Don't hold onto fantasies." "Virtual Money-related businesses are all illegal financial activities."
That means doing these things domestically:
Development, operation, maintenance, community, events, meetings...
all belong to "illegal".
But the reality is:
As long as you don't draw attention to yourself, don't deceive others, and don't engage in large-scale fund flows, they generally won't specifically trouble you. This is the principle of "the people do not raise it, the officials do not investigate."

"Stablecoin risk is the highest" - this is the core,
Why?
Because stablecoins bypass foreign exchange controls, it is equivalent to:
A "non-regulated small dollar system" has been quietly established domestically. This is the most sensitive issue for the country, so the scrutiny is the strictest.
To summarize, the impact is not significant. Personally, I don't think it will be too big because:
Those who can be managed have already been managed, and industry people are all overseas.
The market has long lost hope for the mainland policies, with funds and transactions mainly occurring overseas. This is a statement of attitude, not a devastating blow.
But the points you need to pay attention to:
Do not publicly promote cryptocurrency in the country, do not flaunt wealth, do not create hype, do not participate in gray OTC or wash trading, do not engage in large-scale cross-border capital flows, and do not cross the red lines with self-media content. Being low-key is the best safety.

Final sentence summary
This policy will not lead to a major crash, nor will it change the bull or bear market, but it continues to emphasize one thing:
"Prohibition domestically, active abroad" will be a long-term state. Low profile, pay attention to boundaries, avoid gray areas, this is the correct posture.