The People’s Bank of China (PBoC), the country’s central bank, has reaffirmed its stance that digital asset operations are illegal in the country, and flagged particular risks about stablecoin usage, following a multi-agency meeting on Friday.
“Virtual currencies do not have the same legal status as fiat currencies, lack legal tender status, and should not and cannot be used as currency in the market,” the PBoC said in a statement, translated to English. The central bank also said it would “severely crack down on illegal and criminal activities.”
The comments follow a meeting in Beijing on Friday which convened representatives from thirteen government agencies amid a “resurfacing” of digital asset speculation activity, according to the statement. The PBOC said its crackdown on virtual currency activity, exemplified by its blanket trading and mining ban in Sep. 2021, has “rectified the chaos in the virtual currency market” and “achieved significant results.” The statement marked the PBoC’s most forceful public comments on cryptocurrency since the ban.
Stablecoins drew particular scrutiny. The PBoC identified them as failing to meet know-your-customer and anti-money-laundering standards, flagging risks around money laundering, fraudulent fundraising, illegal cross-border transfers, and underground payments, in its statement, calling them a threat to the country’s financial security.
China continues to ban cryptocurrency trading and mining on the mainland while Hong Kong has embraced the industry with licensing regimes for exchanges and stablecoin issuers. The PBoC has simultaneously pushed forward with its digital yuan pilot program, which has seen over 225 million personal wallets opened.
Yet, Beijing has recently cracked down on some digital asset activity in Hong Kong, telling some top brokerages to pause real-world asset tokenization efforts in September and moving to stop some Chinese tech giants from issuing their own stablecoins in the jurisdiction in October, The Block previously reported.
The former governor of the PboC, Zhou Xiaochuan, also warned of potential pitfalls for stablecoin adoption in a closed-door seminar in July. “Be wary of the risk of stablecoins being overused for asset speculation, as a deviation in direction could trigger fraud and instability in the financial system,” Zhou said. Zhou served as governor of People’s Bank of China from 2002 to 2018.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
