Repost: "Virtual currency is not currency and is not allowed to circulate domestically."

What this means:
Don’t expect domestic legalization—it’s impossible in the short term. Once it’s allowed, it would open the door for capital outflows. So this statement is basically telling everyone: “Don’t hold out hope.” “Any business related to virtual currency is illegal financial activity.”
In other words, doing any of the following in the country:
Development, operations, maintenance, community building, events, conferences…
All fall under “illegal activities.”
But in reality:
As long as you keep a low profile, don’t scam people, and don’t handle large-scale fund flows, they generally won’t go out of their way to cause you trouble. This is the “If the people don’t report, the officials don’t investigate” principle.

"Stablecoins pose the highest risk"—this is the core point.
Why?
Because stablecoins bypass foreign exchange controls. It’s like:
Quietly building an “unregulated mini-dollar system” inside the country. This is extremely sensitive for the authorities, so enforcement is very strict.

To sum up the impact, in my opinion it won’t be significant, because:
Everything that can be regulated has already been regulated, and industry players have moved overseas.
The market has long given up hope on mainland policies; funds and trading are mainly offshore. This is more of a stance than a destructive blow.
What you need to pay attention to:
Don’t publicly promote crypto domestically, don’t show off wealth, don’t hype things up, don’t participate in gray-market OTC or fund splitting, don’t engage in large-scale cross-border capital flows, and don’t cross content red lines as a content creator. Staying low-key is the best protection.

One final summary:
This policy won’t crash the market or change the bull-bear cycle, but it does reinforce one thing:
“Domestic prohibition, overseas activity” will be the long-term status quo. Stay low-key, know your boundaries, don’t touch gray areas—this is the safest approach.