Yesterday (February 6th), a notice jointly issued by eight departments regarding further prevention and handling of risks related to virtual currencies has caused many group friends to panic late at night. Many people got PTSD just by seeing the words 'completely prohibited within the country' and prepared to cut their losses and leave. Calm down, don't be the leeks scared to death by clickbait.
Carefully comparing the 'September 24 notice' from 2021, you will find that this 2026 version of the 'new ban' is extremely precise; it is not meant to kill the already dead domestic exchanges again, but to block the 'rat holes' for 'exporting to domestic sales'.
The core killing move of this document lies in two points:
Severe crackdown on 'fake foreign investment': Clearly prohibits overseas entities controlled by domestic subjects from issuing virtual currencies. This means that those projects, which have a physical presence in the country, are registered in the Cayman Islands, and specifically target domestic users, are basically sentenced to death.
Ban on RMB stablecoins: It is prohibited to issue RMB-pegged stablecoins overseas without approval. This is to prevent fiat currency from indirectly flowing out through Crypto channels; the country's red line regarding financial sovereignty must not be crossed.
What does this mean for the market?
In the short term, those altcoins that claim to be 'Web3 Eastern Power' but are actually controlled by domestic teams will face enormous legal risks and a wave of zeroing out. However, for decentralized global mainstream assets like $BTC and $ETH , this is actually a positive — because funds will withdraw from high-risk gray projects and flow back into truly censorship-resistant hard assets.
Operational suggestion:
If you hold genuine global consensus assets, you can eat and drink as usual, as the fundamentals haven't changed. But if you are holding so-called 'domestic public chains' or 'Chinese projects', it's advisable to quickly clean up your positions during the rebound.
After this wave of cleansing, the market will only become cleaner. Do you have your $BTC firmly in hand?
