Virtual Money is not currency and is not allowed to circulate domestically.

It means:
Don't think that the domestic market will lift the ban; it's impossible in the short term. Because once it's lifted, it opens the door for capital outflow. So this is just to tell everyone: "Don't hold any illusions." "Businesses related to Virtual Money are all illegal financial activities."
That means doing these things domestically:
Development, operation, maintenance, community, events, conferences...
All belong to "illegal".
But the reality is:
As long as you don’t act high-profile, don’t deceive people, and don’t engage in large-scale capital flows, they generally won’t specifically trouble you. This is the principle of "the people don’t raise issues, the officials don’t investigate."

"Stablecoin risk is the highest" - this is the core,
Why?
Because stablecoins bypass foreign exchange controls, it is equivalent to:
A "unregulated small dollar system" has quietly been established domestically. This is the most sensitive issue for the country, so the investigation is the strictest.
To summarize, the impact is not that significant. Personally, I don't think it will be too big because:
Everything that can be regulated has been regulated, and industry people are all overseas.
The market has long lost hope for mainland policies, with funds and transactions mainly occurring overseas. This is a statement of attitude, not a devastating blow.
But points you need to pay attention to:
Do not publicly promote cryptocurrency in the country, do not flaunt wealth, do not create hype, do not participate in gray OTC or wash trading, do not engage in large-scale cross-border capital flows, and avoid crossing the red line with self-media content. Keeping a low profile is the best safety.

Final sentence summary
This policy will not lead to a major crash, nor will it change the bull and bear market, but it continues to emphasize one thing:
"Prohibited domestically, active abroad" will be a long-term status. Keep a low profile, pay attention to boundaries, and avoid gray areas; this is the most correct stance.