The People's Bank of China held a coordinating mechanism meeting to combat the speculation of virtual money trading. Many people panic just by looking at the title, but we need to correctly interpret the logic behind it. However, there is a strange phenomenon: "Every time the country cracks down on virtual money, the more it is suppressed, the more it rises." This meeting is indeed different; the level is very high: thirteen ministries and commissions gathered together, led by the Central Bank, with public security, judicial, and internet information departments all present.

The core points are three: The status of virtual money remains unchanged: it is an asset, not currency. The authorities once again emphasize that Bitcoin and Ethereum have no legal tender status in the country and cannot be used as money for spending or for payment circulation. To put it professionally, it possesses asset properties but lacks currency properties. In simple terms — you can buy it, you can lose, you can also see it rise, but you cannot treat it as a 'parallel world version' of the Renminbi. This classification has not changed from 2017 to now, this time it is just being reiterated.

Stablecoins have been specifically named: currently unrecognized, foreign circulation = high risk, the most sensitive point this time is here. Stablecoins (like USDT) have been directly locked in by the authorities as: one of the main tools for running scores, fraud, and illegal cross-border fund transfers. Therefore, under the current system: stablecoins are unrecognized, and cannot be used for cross-border remittance, acceptance, fundraising, etc. All these have been directly classified into the illegal high-risk zone. In other words, many people previously relied on stablecoins to "take a detour", but now this detour has basically been blocked. The focus is not on coin prices, but on channel regulation: this is a systematic tightening up. This time it is not just a "warning", but a coordination mechanism. This means that in the future, regulation will not be a single department "acting alone", but a "joint operation of the thirteen ministries and commissions". The purpose is very clear: to combat illegal financial activities and strengthen the control of the capital chain. The key words here are: illegal operations, money laundering, and risks of cross-border fund transfers. It is not about cracking down on Bitcoin itself, but rather on some gray industry channels surrounding it.

The most concerning point in the crypto world: Will it affect the market? To be honest, for some illegal financial activities, the impact is huge: "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-demand structure is not determined by the attitude of one country. China is targeting the "domestic channel risk," not the global asset pricing logic. So although the intensity this time is great, the essence is still "risk elimination," not "value going to zero." It's not a one-size-fits-all approach, nor is it about eliminating digital assets, but rather about preventing the emergence of gray chaos in the funding side. The specification of this meeting is indeed high, with thirteen ministries tightening the reins together. The status of virtual money remains unchanged: it is an asset, not money; stablecoins have been specifically named, and gray operations related to cross-border activities will basically have no chance in the future. The regulatory role is to block the channels, not to smash the coin price. 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.