Good morning!
Yesterday, our central bank had more to say again…
The central bank once again emphasized regulation of virtual currencies. What the crypto community truly needs to focus on isn’t just the words “negative news.”
On September 22, the People’s Bank of China again reminded people of the risks of virtual currencies. It clearly stated that virtual currencies do not have legal tender status. Conducting virtual-currency-related business within China is illegal financial activity. It also stressed that without obtaining approval from relevant departments according to law and regulations, stablecoins linked to the RMB may not be issued overseas.
For the crypto market, this does create a more cautious mood in the short term. But I believe the real impact should be broken down and viewed separately.
First, the core trading logic of mainstream crypto assets like BTC and ETH hasn’t fundamentally changed directly due to this statement. What the market needs to pay more attention to are global liquidity, ETF inflows, and risks related to the US dollar and U.S. equities—i.e., overall risk appetite.
Second, the stablecoin sector will feel the impact more directly. The regulatory focus isn’t a simple denial of all stablecoins. Rather, it aims to prevent stablecoins from taking on functions similar to money, which could lead to the formation of a money-circulation system that operates outside regulatory oversight. Especially for RMB stablecoins, if they want to issue overseas in the future, regulatory barriers will be much higher.
Third, there may be more clearly defined “compliance differentiation” between RWA and cross-border payments. Unlicensed tokenization-related businesses face regulatory pressure. But the central bank also said it will continue to optimize cross-border payments and facilitate the international use of the RMB. In other words, digital finance isn’t being halted—it’s simply being framed more around “who does it, how it does it, and where it does it.”
So for the crypto community, the biggest significance of this news isn’t whether BTC will drop. It’s that the regulatory boundary is becoming clearer: speculative virtual-currency businesses will continue to be tightened, while compliant digital finance, cross-border payments, and digitalization of assets will be placed within more clearly defined regulatory frameworks.
What’s really worth watching next is whether stablecoin regulation will further affect exchange liquidity, and whether the RWA and cross-border payments sectors will develop new compliance-focused narratives.
That’s my take!
Yesterday, our central bank had more to say again…
The central bank once again emphasized regulation of virtual currencies. What the crypto community truly needs to focus on isn’t just the words “negative news.”
On September 22, the People’s Bank of China again reminded people of the risks of virtual currencies. It clearly stated that virtual currencies do not have legal tender status. Conducting virtual-currency-related business within China is illegal financial activity. It also stressed that without obtaining approval from relevant departments according to law and regulations, stablecoins linked to the RMB may not be issued overseas.
For the crypto market, this does create a more cautious mood in the short term. But I believe the real impact should be broken down and viewed separately.
First, the core trading logic of mainstream crypto assets like BTC and ETH hasn’t fundamentally changed directly due to this statement. What the market needs to pay more attention to are global liquidity, ETF inflows, and risks related to the US dollar and U.S. equities—i.e., overall risk appetite.
Second, the stablecoin sector will feel the impact more directly. The regulatory focus isn’t a simple denial of all stablecoins. Rather, it aims to prevent stablecoins from taking on functions similar to money, which could lead to the formation of a money-circulation system that operates outside regulatory oversight. Especially for RMB stablecoins, if they want to issue overseas in the future, regulatory barriers will be much higher.
Third, there may be more clearly defined “compliance differentiation” between RWA and cross-border payments. Unlicensed tokenization-related businesses face regulatory pressure. But the central bank also said it will continue to optimize cross-border payments and facilitate the international use of the RMB. In other words, digital finance isn’t being halted—it’s simply being framed more around “who does it, how it does it, and where it does it.”
So for the crypto community, the biggest significance of this news isn’t whether BTC will drop. It’s that the regulatory boundary is becoming clearer: speculative virtual-currency businesses will continue to be tightened, while compliant digital finance, cross-border payments, and digitalization of assets will be placed within more clearly defined regulatory frameworks.
What’s really worth watching next is whether stablecoin regulation will further affect exchange liquidity, and whether the RWA and cross-border payments sectors will develop new compliance-focused narratives.
That’s my take!