More than ten departments collaborate to combat: China's Virtual Money regulation enters a "new normal", what is the impact?

On November 28, 2025, a notice from the People's Bank of China stirred all those concerned with global digital assets and the Web3 sector. A joint meeting of over ten core departments, including the Ministry of Public Security, the Central Financial Office, the Supreme Court, and the Supreme People's Procuratorate, was anything but routine; it was the highest-level assessment of the current risk environment surrounding virtual money within the country. For professionals involved in asset allocation in the global digital economy or engaged in related technology research and development, the most pressing question is: Where exactly is the regulatory scrutiny aimed? In the face of a high-pressure situation under the 'new normal', how can one ensure the security of their assets and the stability of their professional development through prudent professional principles?
This article will strip away the complex context and interpret the logic behind this "high-pressure reappearance" and the industry's response strategies from a professional risk management perspective!

The evolution of regulatory logic: from "isolation" to "precision enforcement"
The history of China's virtual money regulation is essentially a tug-of-war between national financial security and the impulse of private wealth. Understanding the upgrade of regulation is to more accurately assess the current situation:
In 2013, the five ministries issued a "Notice" that defined virtual money as "specific virtual goods" aimed at isolating the risks of traditional financial systems from emerging digital assets.
Isolation: Financial institutions are not allowed to participate, but there is still room for private transactions.
In 2017, seven ministries issued a notice classifying ICOs as "illegal fundraising". The ICO bubble burst, and private fundraising fraud became concentrated. The authorities aimed to cut off financing channels, but did not completely block individual OTC transactions.
2021 "September 24" Notification: In 2021, activities related to Virtual Money were classified as **"illegal financial activities"**.
Global bull market, uncontrolled interaction of domestic and foreign funds, challenges to financial order and energy consumption.
Clear: A full-chain ban, forming an untouchable "high-voltage line" within the country.
The reaffirmation for 2025 is focused on deepening law enforcement and governance efficiency, based on the established policy baseline. It is no longer a macro qualitative discussion about "whether trading is possible," but rather a collaborative action on "how to pursue those who use virtual money for criminal activities." For highly specialized practitioners, this represents a certain degree of risk clarification.
Catalyst of New Risks: Why Bring Up Old Matters at This Time?
The regulatory authorities have chosen to strike hard at this time due to the emergence of new "ignition points" and more misleading catalysts in the domestic risk environment: 1. The secret channels of stablecoins and cross-border capital flows. This meeting explicitly mentioned the risks associated with stablecoins, which directly touches upon the liquidity of funds and the regulatory bottom line for anti-money laundering (AML). With the global development of Web3 and the openness of compliant trading in the Hong Kong region, an objective "institutional gap" has formed. Stablecoins, as a "settlement bridge" connecting fiat currencies and crypto assets, are naturally exploited by criminals to build secret and efficient cross-border capital flow channels—whether to launder illegal gains or evade foreign exchange controls. The collaboration between public security, the judiciary, and the foreign exchange bureau aims to control the risks of this "invisible channel" within a manageable range, preventing it from becoming an outlet for disorderly capital flows in and out of the country.
2. Social Anxiety and the Matrix-style Promotion of "Web3 Wealth"
The current economic environment and employment pressure are breeding grounds for risks. The chaos in the market shows that there are many groups under the banner of "Web3" that are using social anxiety for matrix-style propaganda. These public roadshows, online communities, and provocative self-media accounts are selling not technological innovation, but the fantasy of "getting rich overnight." They entice ordinary people with limited understanding of technology to participate in illegal fundraising, chuanxiao, or high-risk investments. The relevant parties being taken away by the police clearly indicates that the regulatory authorities have realized that these behaviors are rapidly spreading the risks of virtual money from the financial sector to the social order sector, harming the "lifesaving money" of ordinary citizens.
The Hidden Dark Industry: Our Token and the Knife of Criminals
For readers with overseas accounts or engaged in Web3 project technology, the primary concern is how to distinguish between "legitimate gray" and "absolute illegal." The focus of regulation is directed at the black market that exploits the characteristics of cryptocurrency for criminal activities:
Crime Type: Disguise and Core Risks Personal Risk Warning Telecommunication Network Fraud Disguise:
Emotional investment mentor, high-yield platform.
Essence: Using the rapid transfer characteristics of Virtual Money to immediately launder the proceeds of fraud, causing the victims' funds to "sink like a stone."
Risk: Stay away from any "investment guidance" that induces you to recharge tokens on non-mainstream platforms.
Financial fraud and fundraising disguise: Blockchain technology innovation, Web3 ecosystem construction.
Essence: Issuing worthless tokens, conducting a Ponzi scheme by promising high returns and recruiting others.
Risk: Any fundraising activity within the country under the guise of tokens has crossed the "illegal financial activities" red line.
Cross-border money laundering disguise: The convenience of over-the-counter (OTC) trading. Essence: Quickly and anonymously transfer illicit funds across borders using Virtual Money to evade regulation.
Risk: Deep involvement or providing OTC channels for illegal funds may be regarded as an accomplice to money laundering.
Social Revelation: Boundaries and Order are the Prerequisites of Technology
The coordinated law enforcement by multiple departments this time undoubtedly reminds all practitioners: within the territory of China, the boundary between innovation and risk has never been so clear.
The boundaries of technology and the responsibilities of practitioners: We must recognize that whether it is blockchain or AI, the long-term value realization of any emerging technological wave must rely on a stable, orderly, and law-abiding social environment. Without order, these tools will only become accomplices of criminals. For groups committed to digital technology innovation and having profound insights into the industry, this action serves as a strong reminder of prudent management and risk isolation:
Clarify legal boundaries: In the holding and use of digital assets, one should strictly adhere to the legal definition of personal property boundaries and stay away from any actions that touch upon illegal financial business activities.
Strengthen the principle of prudence: Extreme vigilance must be maintained against any domestic commercial activities that promise high, risk-free returns, and any disguised illegal fundraising and market manipulation must be resolutely resisted.
Enhance Professional Competence: Continuously pay attention to the compliance standards and development trends in the international digital finance field, guiding one's behavior with a more forward-looking perspective and professional risk management capabilities.
The original intent of regulation is to prevent systemic risks and protect the property safety of citizens, and its precision often depends on the risk isolation ability and professional self-discipline of the practitioners themselves. Illegal practitioners who use technology to deceive and exploit others not only harm the interests of ordinary people but also "plant mines" for the innovative potential of the entire industry. Only when all practitioners regard compliance as the baseline and social order as a prerequisite can the advancement of technology truly benefit us rather than bring risks.