The Great Shift in Regulatory Focus: What Does the Joint Announcement by Thirteen Ministries and Commissions Mean

From “Financial Risks” to “Criminal Issues”: A Transformation

On November 29, 2025, a joint announcement by thirteen departments marked a critical turning point. On the surface, this appears to be an incremental upgrade in the number of ministries involved—from five ministries in 2013, to seven in 2017, to ten in 2021, and now thirteen. However, beneath the increasing numbers lies a deeper shift in nature: the lead agency shifting from the central bank to the Ministry of Public Security signifies a fundamental change in the focus of crypto asset regulation.

In the past, regulation primarily focused on “preventing financial risks,” employing economic measures such as fines and restrictions. When the Ministry of Public Security became the leading authority, the issue’s nature was upgraded—from “financial violations” to “public security and criminal issues.” The elevation of the Cyberspace Administration’s role further indicates an expanded regulatory perspective: not only monitoring transaction behaviors but also conducting comprehensive tracking and transparent management of on-chain information flow and capital movement.

The “Four-Year Cycle” and Precise Overlap of Regulatory Windows

Looking at price trends, Bitcoin exhibits a clear cyclical pattern—roughly every four years, experiencing peaks and troughs that correspond closely with the “halving” mechanism. More intriguingly, the timing of regulatory policy releases also follows a similar cycle:

• December 5, 2013: Five ministries explicitly state “Bitcoin is not currency”
• September 4, 2017: Seven ministries ban ICOs outright
• September 24, 2021: Ten ministries regulate trading and mining
• November 29, 2025: Thirteen ministries jointly announce

This is no coincidence. Regulatory authorities tend to intervene when market enthusiasm is at its peak and risks are approaching critical levels. The natural market cycle and the human-made regulatory cycle are highly aligned, reflecting a deep logic: taking decisive action at the height of risk is an inevitable choice to prevent systemic financial risks.

From “Financial Risk Alerts” to “Legal Framework Construction”

The most significant changes in this joint announcement include three levels:

First Level: Shift in Law Enforcement主体
From the central bank-led financial regulation to comprehensive governance led by the Ministry of Public Security. This means enforcement tools evolving from economic leverage to administrative and criminal measures.

Second Level: Expansion of Regulatory Focus
The Cyberspace Administration’s elevated role indicates regulation no longer only targets “transaction behaviors” but encompasses:

• Tracking and monitoring on-chain transaction information
• Penetrative management of capital flows
• Implementation of platform information responsibilities
• Governance of online content dissemination

Third Level: Improvement of Legal Framework
The document explicitly mentions “improving policies and legal basis,” marking an important shift—past “violations” will evolve into future “illegal acts.” It is expected that within 1-2 years, relevant judicial interpretations and specialized legislation will be gradually implemented.

The Deep Logic Behind Stablecoins Becoming a Regulatory Focus

This joint announcement emphasizes stablecoins, which is no coincidence. From a regulatory perspective, USDT and other dollar-pegged stablecoins represent two layers of risk:

First is the cross-border capital flow channel. Stablecoins inherently lower the technical barriers for capital outflows, becoming a gray tool to evade foreign exchange controls.

Second is the potential threat to the financial system. When large volumes of dollar stablecoins serve as transaction intermediaries, they effectively weaken the RMB’s control over digital assets.

Therefore, future regulatory crackdown will inevitably target:

• Tightening access channels for fiat and stablecoins
• Enhancing real-time tracking of on-chain transactions
• Cracking down on illegal OTC activities

Stablecoins will become the “regulatory storm eye,” and this process has already begun.

What Does “Chain-Linked Governance” in Regulation Mean?

A key signal from the Ministry of Public Security’s leading role is that regulation will no longer target individual participants but will adopt a “chain-linked governance” approach. This means all segments of the industry chain will be included in the scope:

• Promotion and traffic channels: KOLs, media, community operations
• Trading layer: OTC merchants, node operators, custodians
• Project layer: project teams, members, advisors

Over the past decade, the unregulated expansion of the crypto space has thrived within the “Grayscale survival” space. But with the improvement of the legal framework, this window is closing. All investment and operational activities must now be conducted under the premise of legality—this is the new baseline of awareness.

The Impact on Three Types of Participants in the New Environment

Retail investors need to reassess risk-reward ratios. In the face of legal risks, are potential gains still worth the risk? At the same time, they should be highly vigilant about the source of funds, reduce holdings of stablecoins, and increase sensitivity to on-chain capital flows.

Professional practitioners and opinion leaders face the greatest pressure. Whether operating nodes, conducting market-making, providing OTC channels, or engaging in promotion, these activities may all be subject to intensified scrutiny. Practitioners are confronting unprecedented dual risks—market risk and legal risk.

Emerging ecosystem projects will face further liquidity compression. For ecosystems like MEME that rely on continuously attracting new funds, increased entry barriers mean decreased market activity, which will directly impact price discovery mechanisms.

Reassessing Risks in the Stablecoin Ecosystem

It is worth noting that S&P recently assigned the lowest rating to Tether, implying underlying collateral risks. Although USDT, as a dollar-pegged asset, is unlikely to face direct regulatory bans in the short term, its role as a cross-border capital channel will inevitably be restricted.

Cycles Continue, but the Rules Have Changed

The cyclical nature of crypto assets will never disappear; Bitcoin and mainstream coins will still exhibit their cyclical characteristics. But unlike ten years ago, the rules themselves have changed:

• Past regulation was “warnings and alerts”; now it is “governance and enforcement”
• Previously reliant on “policy adjustments”; future will be based on “legal frameworks”
• There was a “gray zone”; now it will be continuously squeezed

For seasoned participants, this is not a time to exit but a time to redefine participation. For newcomers, entry barriers have indeed risen, but this also means the market is moving toward a more regulated and sustainable direction.

Final Cognitive Advice

When rules change, past experiences may no longer apply. During this period before the “legal framework” is fully established, the market may experience volatility and adjustments. But surviving, maintaining sharp awareness of policy changes, is far more important than short-term gains or losses.

This time, it’s not cognition that determines wealth, but cognition that determines risk.