The People's Bank of China held a coordination meeting to combat speculation in Virtual Money trading.
Many people panic just by looking at the title, but we need to correctly interpret the logic behind it.
But there's a strange phenomenon: "Every time the country cracks down on Virtual Money, it rises even more." 😂
This meeting is indeed different; it has a high specification: thirteen ministries are meeting together, led by the central bank, with public security, prosecution, law, and the internet information office all present.
The core consists of three points:
1️⃣Virtual Money status remains unchanged: it is an asset, not a currency
The authorities reiterated that Bitcoin and Ethereum have no legal tender status in the country, cannot be used as money, and cannot be used for payment circulation.
To put it professionally, it is:
It has asset properties, but does not possess currency properties.
To put it simply —
You can buy, you can lose, you can also gain, but you cannot treat it as the "parallel world version" of Renminbi. This characterization has not changed since 2017, this time it's just being emphasized again.
Stablecoins are highlighted: currently not recognized, foreign circulation = high risk
The most sensitive point is here.
Stablecoins (such as USDT) are directly locked by the authorities as:
One of the main tools for running scores, fraud, and illegal cross-border fund transfers.
So under the current system:
Stablecoins are not recognized and cannot be used for cross-border transfers, acceptance, fundraising, and other activities.
All of these are directly classified as illegal high-risk areas.
In other words, many people used to take a "detour" using stablecoins, but now this detour has basically been blocked.
3️⃣ The focus is not on coin prices, but on channel regulation: this is a systematic closure.
This time it is not a "call to action", but a coordination mechanism.
This means that in the future, regulation will not be a "lone battle" for a single department, but rather a "joint operation of thirteen ministries."
The purpose is very clear:
Crack down on illegal financial activities and strengthen the control of the capital chain.
The keywords here are:
Illegal operation, money laundering, and cross-border fund transfer risks.
It is not about striking at Bitcoin itself, but rather targeting some gray channels surrounding it.
⭐The most concerning point in the coin circle: Will it affect the market?
To be honest, the impact of some illegal financial activities is enormous:
"Every time the country cracks down on Virtual Money, the more it cracks down, the more it rises."
The reason is simple:
The global market is too large, and the supply and demand structure is not determined by the attitude of a single country.
China is addressing the "domestic channel risk."
It's not a global asset pricing logic.
So although the intensity this time is great, the essence is still "risk elimination", not "value going to zero".
It is not a one-size-fits-all approach, nor is it about eliminating digital assets, but rather about ensuring that the funding side no longer has gray areas.
The standards for this meeting are indeed high, with thirteen ministries jointly tightening the regulations. The status of virtual money remains unchanged: it is an asset, not currency; stablecoins have been specifically named, and gray area practices related to cross-border transactions will basically have no chance in the future. The role of regulation is to block channels, not to crash coin prices. Historical patterns tell us that after each crackdown, the market often becomes even stronger. The key is to understand the policy bottom line and not to cross the red line.
Many people panic just by looking at the title, but we need to correctly interpret the logic behind it.
But there's a strange phenomenon: "Every time the country cracks down on Virtual Money, it rises even more." 😂
This meeting is indeed different; it has a high specification: thirteen ministries are meeting together, led by the central bank, with public security, prosecution, law, and the internet information office all present.
The core consists of three points:
1️⃣Virtual Money status remains unchanged: it is an asset, not a currency
The authorities reiterated that Bitcoin and Ethereum have no legal tender status in the country, cannot be used as money, and cannot be used for payment circulation.
To put it professionally, it is:
It has asset properties, but does not possess currency properties.
To put it simply —
You can buy, you can lose, you can also gain, but you cannot treat it as the "parallel world version" of Renminbi. This characterization has not changed since 2017, this time it's just being emphasized again.
Stablecoins are highlighted: currently not recognized, foreign circulation = high risk
The most sensitive point is here.
Stablecoins (such as USDT) are directly locked by the authorities as:
One of the main tools for running scores, fraud, and illegal cross-border fund transfers.
So under the current system:
Stablecoins are not recognized and cannot be used for cross-border transfers, acceptance, fundraising, and other activities.
All of these are directly classified as illegal high-risk areas.
In other words, many people used to take a "detour" using stablecoins, but now this detour has basically been blocked.
3️⃣ The focus is not on coin prices, but on channel regulation: this is a systematic closure.
This time it is not a "call to action", but a coordination mechanism.
This means that in the future, regulation will not be a "lone battle" for a single department, but rather a "joint operation of thirteen ministries."
The purpose is very clear:
Crack down on illegal financial activities and strengthen the control of the capital chain.
The keywords here are:
Illegal operation, money laundering, and cross-border fund transfer risks.
It is not about striking at Bitcoin itself, but rather targeting some gray channels surrounding it.
⭐The most concerning point in the coin circle: Will it affect the market?
To be honest, the impact of some illegal financial activities is enormous:
"Every time the country cracks down on Virtual Money, the more it cracks down, the more it rises."
The reason is simple:
The global market is too large, and the supply and demand structure is not determined by the attitude of a single country.
China is addressing the "domestic channel risk."
It's not a global asset pricing logic.
So although the intensity this time is great, the essence is still "risk elimination", not "value going to zero".
It is not a one-size-fits-all approach, nor is it about eliminating digital assets, but rather about ensuring that the funding side no longer has gray areas.
The standards for this meeting are indeed high, with thirteen ministries jointly tightening the regulations. The status of virtual money remains unchanged: it is an asset, not currency; stablecoins have been specifically named, and gray area practices related to cross-border transactions will basically have no chance in the future. The role of regulation is to block channels, not to crash coin prices. Historical patterns tell us that after each crackdown, the market often becomes even stronger. The key is to understand the policy bottom line and not to cross the red line.
