BEIJING: China’s People’s Bank of China (PBOC) doubled down on its stringent anti-crypto policy Saturday, cautioning against a recent uptick in virtual currency speculation and pledging a robust crackdown on stablecoin-related illegalities.
In a statement following Friday’s virtual currency regulation coordination meeting, the PBOC emphasized that cryptocurrencies lack legal tender status and deem related business activities as illegal financial operations. Stablecoins, in particular, were flagged for inadequate customer identification and anti-money laundering safeguards, heightening risks of money laundering, fraud, and illicit cross-border transfers.
“We will intensify efforts to combat these illegal activities and safeguard economic and financial stability,” the central bank declared. This echoes October remarks by Governor Pan Gongsheng, who vowed ongoing suppression of domestic crypto operations while monitoring overseas stablecoin developments.
China has prohibited crypto trading since 2021, though Bitcoin mining is quietly rebounding in energy-abundant provinces via cheap power and data centers. Meanwhile, Hong Kong’s stablecoin framework remains license-free.