The People’s Bank of China has renewed its warning against cryptocurrency activity, stressing that the national crypto ban remains fully in force. The central bank said that trading activity has begun to reappear, and it plans to take stronger action, especially against stablecoins.
China’s central bank issued the statement after meeting with 12 other agencies. It noted that “virtual currency speculation has resurfaced” and is creating new risks for financial oversight. According to the bank, virtual assets do not have the legal status of fiat currency, cannot be used as legal tender, and must not circulate as money within the market.
The bank repeated that all business activities related to virtual currencies are considered illegal financial operations. China banned all crypto trading and mining in 2021, arguing that crypto use could enable crime and threaten broader financial stability.
Stablecoins labelled a key risk
The central bank also placed special focus on stablecoins. It said that these tokens fail to meet legal and compliance standards and are increasingly linked to unlawful activities.
According to the statement, stablecoins do not meet customer identification or Anti-Money Laundering requirements. As a result, they may be used for money laundering, fraudulent fundraising, or illegal cross-border transfers.
The People’s Bank of China said it will continue to act against all illegal financial activities tied to crypto in order to protect economic and financial order.
Thirteen agencies that joined the meeting committed to improving cooperation. They agreed to expand information sharing, improve monitoring systems, and strengthen enforcement tools to track crypto-related activity.
Recent reports also show that China remains a significant player in global Bitcoin mining. Reuters announced that China held about 14% of total market share by the end of October.
In August, Chinese regulators reportedly told brokers to cancel seminars and stop promoting research on stablecoins due to concerns that these assets could support fraudulent schemes.
In contrast, Hong Kong introduced a licensing framework for stablecoin issuers in July. However, some tech firms paused their stablecoin plans after pressure from mainland regulators.
