The policy remains consistent! Regulations clearly maintain a prohibition on activities related to virtual currencies.

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 Authority, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the “Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Activities” (hereinafter referred to as the “Notice”). This “Notice” is a further continuation and improvement of the 2021 “Notice on Further Preventing and Disposing of Risks of Virtual Currency Trading and Speculation” (hereinafter referred to as “Document No. 237”).

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

The Financial Times has summarized the evolution of policies related to virtual currencies.

In 2013, when Bitcoin was first being speculated upon domestically and internationally, the People’s Bank of China and four other departments jointly issued the “Notice on Preventing Risks of Bitcoin,” which clearly stated that Bitcoin is a virtual commodity, not currency, and prohibited financial institutions from engaging in 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 platforms within the country, strongly curbing the trend of token issuance financing speculation.

In 2021, the trend of virtual currency trading speculation within the country increased, and the People’s Bank of China and ten other departments jointly issued the “Notice on Further Preventing and Disposing of Risks of Virtual Currency Trading and Speculation,” further clarifying that Bitcoin, Ethereum, and stablecoins such as Tether do not have the same legal status as legal currency, and engaging in virtual currency-related business activities within the country is considered illegal financial activity, which is strictly prohibited. A coordination mechanism was established to combat virtual currency trading speculation, and efforts to clean up and rectify chaos in the virtual currency market continued, effectively protecting public property safety, maintaining economic and financial order, and social stability.

In 2025, due to various factors, virtual currency trading speculation within the country resurfaced, 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 eleven other departments held a meeting on the coordination mechanism for cracking down on virtual currency trading speculation, reaffirming the firm stance against virtual currency trading speculation and rectifying chaos in the virtual currency market. The meeting emphasized that virtual currencies do not have the same legal status as legal currency, lack legal tender status, and should not and cannot circulate as currency in the market. Activities related to virtual currencies are considered illegal financial activities. Stablecoins are a form of virtual currency that currently cannot effectively meet requirements such as customer identity verification and anti-money laundering, and pose risks of being used for money laundering, fundraising scams, and illegal cross-border fund transfers.

On December 5, 2025, the China Internet Finance Association and six other associations issued the “Risk Reminder on Preventing Illegal Activities Involving Virtual Currencies and Related Assets,” further clarifying that virtual currencies and real-world assets (RWA) related activities are illegal financial activities, and warning the public of associated risks.

Source: Financial Times

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