The Solana event in Shenzhen was cleared by the police, and mainland China is cracking down on the operations and speculation of Virtual Money?

On the afternoon of October 28, 2025, a piece of news quickly spread in the Crypto Assets community: the Solana Accelerate APAC offline event scheduled to be held in Shenzhen was abruptly halted halfway through, and subsequent project roadshows and other segments were also forced to be canceled. According to images circulated in the community and descriptions from attendees at the venue, police entered the event location for inquiries. The official explanation given states that the cancellation of the event may be related to complaints received.

This sudden event not only cast a shadow over Solana's activities in China but also sparked widespread speculation in the market: does this mean that the regulatory storm against virtual currencies in mainland China is escalating again? The answer may lie in the public speech made by the Governor of the People's Bank of China, Pan Gongsheng, the day before the incident.

The Horn of Regulation

On the day before the Solana event in Shenzhen was cleared (October 27), Pan Gongsheng, the governor of the People's Bank of China, delivered the latest policy direction on encryption currency regulation at the Beijing Financial Street Forum Annual Meeting, sending a very clear and strong signal.

Pan Gongsheng reiterated that a series of policy documents issued by the People's Bank of China in conjunction with multiple departments since 2017, aimed at preventing risks associated with virtual currency trading and speculation, remain fully effective to this day. He emphasized that the People's Bank will continue to work with law enforcement agencies to “severely crack down” on all business and speculative activities related to virtual currencies within the country, in order to resolutely maintain the national economic and financial order.

Pan Gongsheng specifically pointed the finger at stablecoins. He noted that although various stablecoins have emerged in the market, they are still in the early stages of development and generally fail to meet basic financial regulatory requirements such as customer identification (KYC) and anti-money laundering (AML). He warned that the popularity of these stablecoins not only fosters a “speculative market atmosphere” but may also exacerbate the vulnerability of the global financial system, even undermining the monetary sovereignty of some developing economies. Therefore, the People's Bank of China will closely monitor and dynamically assess the development of overseas stablecoins to prevent potential impacts on domestic financial stability.

This speech undoubtedly provided the most direct policy interpretation for the events that occurred the next day in Shenzhen. As a globally recognized public chain ecosystem, Solana's offline promotional activities held in mainland China clearly touched the red line set by the regulators that strictly prohibit operation and speculation. From the smooth hosting in Shanghai and Hangzhou to the abrupt halt in Shenzhen, the turning point was precisely the public warning from the governor of the central bank. This indicates that the statements from regulatory agencies are not mere talk, but will quickly translate into actual actions by local law enforcement.

Strongly promote digital RMB

While strictly restricting decentralized Crypto Assets, China is making every effort to promote its own sovereign digital currency - the digital renminbi (e-CNY). Pan Gongsheng clearly stated in his speech that the People's Bank will further optimize the management system of the digital renminbi and support more commercial banks to join as operating institutions.

Since the pilot program began in 2019, the transaction volume of the digital renminbi has exceeded 14 trillion yuan. To promote its systematic operation and internationalization, the People's Bank of China has established an international operations center in Shanghai, responsible for cross-border cooperation; and an operations management center in Beijing, responsible for system construction and maintenance.

Digital Renminbi is fundamentally different from Bitcoin or stablecoins. It is a centralized digital currency (CBDC) issued by the central bank, with its value pegged 1:1 to the physical Renminbi, backed by national credit. This means the government has complete control over it, allowing for effective implementation of monetary policy, tracking of fund flows, and combating illegal activities, which directly addresses all the concerns raised by Pan Gongsheng regarding stablecoins. In contrast, the United States has passed policies such as the GENIUS Act, aimed at paving the way for the development of dollar stablecoins, thereby consolidating the dominance of the dollar in the era of digital assets. This also indirectly explains why China is so vigilant about overseas stablecoins that may challenge its monetary sovereignty.

The two extremes of ice and fire

As mainland China tightens the regulatory noose on Crypto Assets once again, its surrounding Asian countries and regions present a starkly different picture, especially in the stablecoin sector, where a wave of embrace and innovation is rising.

On the same day that Pan Gongsheng delivered his speech, the Japanese startup JPYC officially launched the world's first regulated yen stablecoin, also named JPYC, and set an ambitious goal of issuing 10 trillion yen (approximately 66 billion USD) within three years. Coincidentally, just last month, South Korea also launched its first fully compliant won stablecoin KRW1 on the Avalanche blockchain through a collaboration between digital custodian BDACS and Woori Bank.

Meanwhile, Hong Kong, as a Special Administrative Region of China, is actively working to position itself as a global virtual asset center. Bank of China (Hong Kong) is reportedly planning to apply for a stablecoin license, and Standard Chartered Bank has also shown strong interest in this. Notably, technology giants from mainland China are “going around” to Hong Kong to layout their offshore stablecoin businesses. Ant Group has applied for a trademark named “ANTCOIN” in Hong Kong, covering stablecoins, token issuance, and transfer; while JD.com also plans to seek overseas licenses to use stablecoins for cross-border B2B payments, eventually expanding to the consumer end.

This stark contrast highlights China's complex and cautious attitude towards crypto assets. On one hand, the mainland is on high alert, resolutely curbing decentralized crypto assets and shutting out any activities that could disrupt financial order; on the other hand, it allows capital and enterprises to explore and experiment in a controlled environment through Hong Kong, this “free economic sandbox,” attempting to seize the initiative in the future digital financial landscape.

Clear Signal

The temporary cancellation of the Solana event in Shenzhen is not an isolated incident, but rather a public demonstration of China's current strict regulatory policies on Crypto Assets. It clearly indicates that in mainland China, any form of offline gatherings and business activities aimed at promoting and facilitating Crypto Assets trading faces extremely high policy risks and uncertainties.

Governor Pan Gongsheng's speech provided authoritative endorsement for this action, establishing the tone of “continuing to crack down.” For all Crypto Assets practitioners and enthusiasts, the signal conveyed could not be clearer: the regulatory red line in mainland China is clear and firm, and any attempt to challenge or blur this line will face rapid responses from regulatory authorities. In the foreseeable future, Crypto Assets activities in mainland China will continue to be under high pressure.