Market News

China Doubles Down on Crypto Ban: Central Bank Raises Red Flags Over Stablecoins

The People's Bank of China (PBOC) has reaffirmed its stringent stance against cryptocurrencies during a high-level coordination meeting held on November 28, 2025.

Representatives from multiple government agencies, including the Ministry of Public Security and the Cyberspace Administration, participated in discussions emphasizing the illegality of crypto activities.

The PBOC reiterated that cryptocurrencies are not recognized as legal tender and are classified as illicit financial activities.

Concerns were also raised regarding stablecoins, which were identified as posing significant risks due to inadequate customer identity verification and anti-money laundering measures.

The bank warned that these risks could lead to money laundering, fraudulent fundraising, and illegal cross-border transactions.

Officials noted a recent uptick in cryptocurrency speculation, which has been linked to an increase in illicit activities.

Despite previously implemented regulatory measures in 2021 that curtailed trading, new market dynamics have led to rising risks.

The PBOC emphasized that controlling financial risks remains a "permanent duty" and reiterated its commitment to prohibiting virtual currencies.

Organizations are urged to enhance monitoring mechanisms, facilitate information sharing, and tighten oversight to combat illegal activities.

As China navigates its strict regulatory environment, the future of crypto and stablecoin activities remains uncertain under these stringent measures.