- China and Hong Kong reinforced strict controls on virtual currency operations and corporate crypto investments.
- The Federal Reserve cut rates and ended balance sheet reduction, signaling a new monetary direction.
- Global institutions, including Visa, Citi, and the Ethereum Foundation, advanced stablecoin use and blockchain integration.
Global regulators and central banks introduced major policy signals this week, marking a decisive phase for cryptocurrency oversight and monetary direction. From Beijing’s continued enforcement against virtual currency speculation to the U.S. Federal Reserve’s policy adjustments, the week reflected coordinated moves toward tightening supervision while balancing financial stability.
China Reinforces Control Over Virtual Currency Activities
The Governor of the People’s Bank of China, Pan Gongsheng, confirmed the central bank’s long-standing position, which is against the operations of domestic virtual currencies. In his words: “Since 2017, policies have been made by the Chinese government to control speculation. These measures are still in place, and actions to enforce them will be taken together with the police”. Pan highlighted that monitoring foreign stablecoins will be an ongoing process to evaluate their potential impact on China’s financial system.
Hong Kong Reviews Corporate Crypto Investments
In Hong Kong, Securities and Futures Commission Chairman Timothy Wong said the agency is assessing whether to create specific guidelines for listed companies investing in digital assets. At present, Hong Kong does not allow companies to convert into entities that primarily hold cryptocurrencies. The SFC will observe market trends before determining new requirements, while the Hong Kong Exchanges and Clearing Limited continues to reject applications under the Digital Asset Treasury model.
Fed Cuts Rates, Ends Balance Sheet Reduction
The Federal Reserve cut its policy rate by 25 basis points , setting the upper bound at 4.00%. It also confirmed plans to end balance sheet reduction on December 1, 2025. Starting that month, the Fed will reinvest proceeds from maturing Treasuries and mortgage-backed securities into short-term Treasury bills. The decision reflects an effort to maintain liquidity while guiding inflation toward target levels.
Global Policy and Institutional Developments
It was the President of the United States, Donald Trump, who first announced his intention to propose a new Chair for the Federal Reserve by the end of this year. The list contains five potential names, all of whom are regarded as very open towards digital assets. On the other hand, the Australian Securities and Investments Commission released new cryptocurrency rules with the help of Info Sheet 225, thus extending the financial services regulation to include stablecoins, staking, and tokenized products. The change is in line with an upcoming licensing structure for trading platforms and storage firms.
Expanding Institutional and Corporate Crypto Adoption
The Ethereum Foundation launched a new institutional portal to support enterprise adoption and highlight compliance-based privacy tools. Developers also confirmed December 3 as the launch date for the Fusaka upgrade, introducing PeerDAS technology and higher block limits. Meanwhile, Visa announced support for four additional stablecoins across four blockchains, and Western Union filed a trademark for “WUUSD” following its stablecoin project. Citigroup partnered with Coinbase to test cross-border payments using stablecoins and plans to offer on-chain settlement options soon.
