China's 1128 Meeting Reiterates Virtual Currency Regulations, Focuses on Stablecoin Abuse

Citing Odaily, on November 28, 2025, China's central bank and 13 other departments held a coordination meeting to reiterate the 2021 '9.24 Notice,' which prohibits commercial virtual currency activities on the mainland and targets money laundering and illegal capital outflows via stablecoins. The meeting emphasized judicial policy adjustments and stricter enforcement against stablecoin-based illegal foreign exchange activities. The legal system has seen a shift from a blanket invalidation of crypto-related contracts to more nuanced rulings, and courts are now more likely to facilitate pre-trial mediation. Meanwhile, the crackdown on stablecoin abuse reflects growing concerns over circumvention of China's strict foreign exchange controls. The meeting also signals continued regulatory vigilance, despite limited market reaction.