Market News

China's Central Bank Reinforces Stance Against Digital Assets Amid Market Speculation

The People's Bank of China (PBOC) has renewed its firm opposition to cryptocurrency trading in light of rising market speculation.

This announcement was made during a recent meeting focused on enhancing government efforts to combat activities related to virtual currencies.

In 2021, China imposed a comprehensive ban on cryptocurrency trading and mining, citing threats to financial stability.

Despite increasing global regulation and adoption of cryptocurrencies, the PBOC continues to assert that all forms of digital currencies, including stablecoins, lack legal tender status.

The central bank has emphasized that stablecoins do not meet essential anti-money laundering and customer identification requirements, posing risks for illegal activities.

The meeting included representatives from 13 government agencies tasked with coordinating a response to cryptocurrency concerns.

The PBOC's directive calls for strengthened regulatory actions to enforce existing bans, in alignment with President Xi Jinping's policy framework.

The bank aims to improve cooperation among institutions to enhance monitoring and curb illicit financial operations effectively.

Currently, the total cryptocurrency market cap stands at $3.06 trillion, experiencing a slight increase of 0.12%, though overall trading volumes have dropped significantly.

As the PBOC fortifies its regulatory stance, the future of digital assets in China remains uncertain amidst these stringent measures.