China has reiterated its stringent regulatory stance on cryptocurrency, emphasizing a zero-tolerance policy towards virtual currency trading. The government has identified stablecoins as a key risk area and is committed to advancing the development of the digital yuan (e-CNY). Future regulatory efforts may intensify against domestic platforms and cross-border stablecoin transactions, while promoting e-CNY and enhancing multi-departmental collaboration. This could increase policy risks for the crypto sector, narrowing gray areas, but also present opportunities for compliance-focused initiatives.