The People’s Bank of China (PBoC) held a major coordination meeting on Friday, November 28, 2025, bringing together thirteen government agencies to address what they call a “resurgence” of digital asset speculation.
China’s financial authorities have delivered their strongest warning against cryptocurrencies in years.
The meeting marked the most forceful public statement on cryptocurrency since China’s original ban in 2021. Officials made it clear that virtual currencies remain illegal and pose growing risks to financial stability.
Multi-Agency Crackdown Intensifies
The coordination meeting included high-level representatives from key government bodies. These agencies ranged from the Ministry of Public Security to the Supreme People’s Court. The coordination shows how seriously Beijing takes the crypto threat.
“Virtual currencies do not have the same legal status as fiat currencies, lack legal tender status, and should not and cannot be used as currency in the market,” the PBoC stated. The bank promised to “severely crack down on illegal and criminal activities.”
This statement directly counters any speculation that China might soften its stance on digital assets. The meeting addressed what officials described as renewed crypto speculation driven by global price increases and social media hype.
Chinese authorities noted that their September 2021 crackdown had “rectified the chaos in the virtual currency market” and “achieved significant results.” However, they observed that crypto activities have recently increased again.
Stablecoins Face Particular Scrutiny
The PBoC singled out stablecoins for special criticism. These digital tokens, designed to maintain stable value by pegging to traditional currencies, drew harsh warnings from regulators.
Officials identified stablecoins as failing to meet know-your-customer and anti-money laundering standards. The bank flagged risks around money laundering, fraudulent fundraising, illegal cross-border transfers, and underground payments.
“Stablecoins, a form of virtual currency, currently fail to effectively meet requirements for customer identification and anti-money laundering,” the statement read. Chinese authorities called them a direct threat to the country’s financial security.
This focus on stablecoins reflects growing global adoption of these assets. Unlike volatile cryptocurrencies like Bitcoin, stablecoins aim to provide digital currency stability. However, Beijing sees this stability as potentially more dangerous for capital controls.
The warnings echo concerns raised by Zhou Xiaochuan, former PBoC governor who served from 2002 to 2018, during a July closed-door seminar. He cautioned about “the risk of stablecoins being overused for asset speculation, as a deviation in direction could trigger fraud and instability in the financial system.”
Beijing has already moved to block stablecoin initiatives by major Chinese tech companies in Hong Kong.
Underground Mining Paradox
Despite the harsh rhetoric, Bitcoin mining has quietly returned to China. Recent data from October 2025 shows the country has climbed back to third place globally, accounting for approximately 14% of worldwide mining operations.
This underground revival centers on energy-rich provinces like Xinjiang and Sichuan. Miners exploit cheap electricity and surplus data center capacity that cannot be exported to other regions.
“A lot of energy cannot be transmitted out of Xinjiang, so you consume it in the form of crypto mining,” one private miner told Reuters. New mining projects are reportedly under construction despite the official ban.
Mining equipment sales support this trend. Canaan Inc., a major Bitcoin mining machine manufacturer, saw its China revenue jump from just 2.8% of global sales in 2022 to 30.3% in 2024, with sources indicating it exceeded 50% in the second quarter of 2025.
CryptoQuant estimates that 15% to 20% of global Bitcoin mining capacity now operates within China. This creates an interesting contradiction where Beijing bans crypto while underground mining operations persist despite official prohibition.
Hong Kong’s Different Path
While mainland China maintains strict prohibition, Hong Kong has embraced digital assets with regulated licensing systems. The territory implemented its stablecoin framework in August 2025, allowing supervised digital currency operations.
However, Beijing has recently intervened in Hong Kong’s crypto activities. In September 2025, authorities told major brokerages to pause real-world asset tokenization efforts, and in October moved to block Chinese tech giants from issuing their own stablecoins in the territory.
This intervention shows that despite Hong Kong’s semi-autonomous status, mainland policies ultimately dictate the region’s digital asset future. Beijing appears determined to prevent any backdoor entry for crypto activities through Hong Kong.
The contrast highlights China’s complex approach to digital assets. Officials want to maintain absolute control over the mainland while using Hong Kong as a testing ground for regulated experimentation.
Digital Yuan Development Continues
China’s crackdown on private cryptocurrencies continues alongside promotion of its state-backed digital yuan (e-CNY). The central bank digital currency has seen over 225 million personal wallets opened since its pilot launch.
Beijing views the digital yuan as a safer alternative to private cryptocurrencies. The government-controlled system allows for transaction monitoring while maintaining monetary policy control.
Officials worry that private stablecoins could undermine the digital yuan’s adoption and threaten China’s monetary sovereignty. This concern drives much of the hostility toward private digital currencies.
The digital yuan development represents China’s attempt to gain cryptocurrency benefits while maintaining complete government control. This strategy explains why Beijing remains so hostile to independent digital assets.
Enforcement and Future Outlook
Chinese authorities emphasized that preventing financial risks is a “permanent duty.” They called for stronger monitoring mechanisms focused on information and fund flows between agencies.
The meeting participants agreed to increase information sharing and improve oversight frameworks. Officials plan to take strong measures against illegal crypto activities while protecting citizens from scams.
Beijing’s approach stands in contrast to many Western countries that have moved toward regulated crypto integration. The latest announcement reinforces China’s commitment to complete cryptocurrency prohibition.
However, the underground mining revival and continued enforcement challenges suggest that complete elimination remains difficult. Economic incentives for crypto activities persist despite regulatory hostility.
The Iron Fist Meets Digital Reality
China’s November 2025 crypto crackdown represents the strongest official stance since the original 2021 ban. While Beijing maintains absolute prohibition on paper, underground activities continue to flourish where economic incentives align with practical realities. The contradiction between harsh rhetoric and persistent underground operations highlights the fundamental challenge of regulating decentralized technologies, even in authoritarian systems.