China Doubles Down on Crypto Ban as PBOC Issues Warning on Stablecoins
China's central bank reiterated its strict cryptocurrency ban, specifically warning that stablecoins pose risks due to inadequate compliance.Summary
The People's Bank of China (PBOC) reaffirmed that digital assets are illegal in the country, emphasizing that cryptocurrencies lack the legal status of fiat currency and cannot be used for payment.
The PBOC highlighted that crypto-related business activities constitute illegal financial activity. It specifically targeted stablecoins, stating they fail to meet necessary standards for customer identification and anti-money laundering controls, thus creating risks for money laundering and illegal cross-border transfers.
This continued strict enforcement contrasts with global trends where other major economies are creating frameworks to integrate digital assets. Instead, China remains focused on developing its central bank digital currency, the e-CNY, despite persistent underground crypto activity and a reported return of some Bitcoin mining operations.
(Source：BeInCrypto)