China’s Central Bank Reinforces Crypto Ban, Warns of Stablecoin Threats

China's financial authorities, including the People's Bank of China (PBoC) and various high-level agencies, issued their strongest public statement against cryptocurrencies since the 2021 ban, reaffirming that virtual currencies are illegal and pose growing risks. The PBoC explicitly warned against stablecoins, citing their failure to meet KYC/AML standards and flagging them as threats for money laundering and undermining capital controls. Despite the strict prohibition, underground Bitcoin mining has resurged in China, now accounting for an estimated 15% to 20% of global capacity, exploiting cheap energy in provinces like Xinjiang. Furthermore, while mainland China remains prohibitive, Beijing is intervening in Hong Kong's regulated crypto environment to prevent any backdoor entry for private digital assets, contrasting this with the continued promotion of the state-backed digital yuan (e-CNY).

(Source：Brave New Coin)