In the midst of strategizing, we decide the outcome from thousands of miles away. Hello everyone, I am Lin Chao, a global financial market observer, focusing on cryptocurrency market analysis, bringing you the most in-depth trading information analysis and technical teaching.

On October 27, during his speech at the 2025 Financial Street Forum Annual Meeting, Pan Gongsheng, the Governor of the People's Bank of China, reiterated the ongoing crackdown on the "operation and speculation" of virtual currencies within the country. Upon seeing this news, Lin Chao received two private messages from fans asking whether this would impact the market and if it would become more difficult to invest in cryptocurrencies in the future. In fact, after decades of various policy experiences, the situation has remained largely the same year after year. When the market is performing well, some policies will be introduced to curb speculative sentiment, mainly serving as reminders for newcomers who have not yet entered the market. Personally, I have not been paying much attention to these policies, focusing instead on the market itself. However, many people still struggle to interpret these policies objectively. Therefore, today Lin Chao will summarize the core information from this speech, its potential impact, and possible responses from market participants.

In fact, Governor Pan's speech is not an isolated event but a clear reaffirmation of China's ongoing regulatory approach to the cryptocurrency sector. The core intentions and concerns mainly revolve around the following points: First, to maintain financial order and stability, particularly viewing the speculative atmosphere surrounding stablecoins as one of the factors increasing the vulnerability of both the global and domestic financial systems. Cracking down on related activities is a preventive measure to guard against potential financial risks and protect investors' interests. The shortcomings of virtual currencies like stablecoins in areas such as customer identity verification and anti-money laundering could exacerbate regulatory loopholes related to money laundering and illegal cross-border fund transfers. Ongoing crackdowns are also necessary to maintain financial security and the effectiveness of national capital controls.

Potential Impact on the Cryptocurrency Market

Governor Pan's statement may ripple through the market in the following ways: The most direct impact is the further suppression of virtual currency trading and speculation within China. For domestic funds and users still participating through other channels, convenience and security will decrease, and market sentiment may be disturbed in the short term. Although the speech did not directly mention "mining," the term "operation" can encompass the previously comprehensively cleared virtual currency "mining" activities. This provides a policy basis for preventing a resurgence of "mining."

The speech also mentioned the extensive discussions among countries regarding the risks of stablecoins at the annual meeting of the International Monetary Fund (IMF) and the World Bank. This indicates that, despite differing regulatory paths, major financial regulatory agencies have reached an international consensus on the cautious attitude towards the potential risks of virtual currencies (especially stablecoins). The differences in regulatory policies across different jurisdictions will continue to influence the flow of funds and the distribution of business models in the global market.

Lin Chao's Summary:

In this article, we do not analyze macro political factors. Given the current global environment's fragmentation, I believe that those with independent thinking abilities can understand the political stance within the policies. Here, I just want to remind everyone to recognize that the ongoing high-pressure regulation domestically is mainly aimed at a series of consequences that may arise from the outflow of funds through illegal channels. However, from the standpoint of the market economy itself, it is difficult to fundamentally change the long-term development trend of the global cryptocurrency market. The driving force of the market comes more from technological iterations, global liquidity cycles, and the degree of adoption by mainstream institutions. Historically, regardless of whether those in power acknowledge it, the development of productive forces will not cease due to any political factors. However, losing direct participation from such a vast market as China will indeed affect its user base and ecological scale to some extent.

For ordinary investors or traders: It is essential to pay attention to the risks highlighted by regulations. Everyone should protect their wallets more rigorously, especially by raising awareness against financial scams and keeping a distance from stablecoin projects that promise guaranteed profits and high returns.

For the global cryptocurrency market, this signifies that a significant economy still maintains a closed stance towards it. However, the market must also recognize that the "tight" and "loose" nature of regulation is a dynamic adjustment process. As Governor Pan also mentioned, the central bank will "closely monitor and dynamically assess the development of overseas stablecoins." In the future, if technology achieves breakthroughs in meeting regulatory requirements or if the global regulatory framework matures, there is a possibility of a marginal change in attitude, but this will undoubtedly be a long and cautious process.

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This article represents personal opinions and does not constitute any trading advice. The cryptocurrency market carries risks; invest cautiously!

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