China's central bank, alongside 13 other departments, reiterated its 2021 ban on commercial virtual currency activities during a coordination meeting on November 28, 2025. The focus was on combating money laundering and illegal capital outflows facilitated by stablecoins. The meeting highlighted judicial policy adjustments, including stricter enforcement against illegal foreign exchange activities involving stablecoins. The legal system in China is evolving, with courts now more inclined towards nuanced rulings and pre-trial mediation in crypto-related cases. This shift reflects a strategic approach to addressing stablecoin abuse, which poses risks to China's foreign exchange controls. Despite these regulatory efforts, the market response has been muted, indicating ongoing vigilance by Chinese authorities.