China Bolsters Virtual Currency Regulation with Systemic Governance

China’s approach to virtual currency regulation has undergone a significant transformation. The People’s Bank of China (PBOC) collaborated with 13 government departments to establish systemic governance for digital currencies, aiming to curb speculation and illicit activities. This new system, introduced on November 28, 2025, focuses on stablecoins, recognizing their potential vulnerability in illegal financial operations. China is deploying advanced legal frameworks and technological monitoring to combat these challenges.