China’s central bank reaffirms crypto ban, flags stablecoin risks following multi-agency meeting

The People's Bank of China (PBoC) reaffirmed that virtual currencies lack legal tender status and are illegal for market use, following a meeting with thirteen government agencies amid resurfacing digital asset speculation. The PBoC stated its 2021 ban on crypto trading and mining achieved significant results, marking its most forceful public comments since then. Stablecoins received particular scrutiny, flagged for failing KYC/AML standards and posing risks related to money laundering, fraudulent fundraising, and illegal cross-border transfers. While mainland China maintains its ban, Hong Kong has embraced the industry, though Beijing has recently pressured Hong Kong entities to pause RWA tokenization and stablecoin issuance by tech giants. Concurrently, the PBoC continues advancing its digital yuan pilot program.

(Source：The Block)