China To Intensify Crackdown on Virtual Currencies, Including Stablecoins: Report

Mainland Chinese officials from agencies including the People's Bank of China (PBOC) confirmed during a Friday meeting that virtual currencies lack the legal status of fiat money and all related activities are considered illegal financial operations. Officials warned about rising speculative trading posing new financial risks, despite China recently re-emerging as a major Bitcoin mining hub. Specifically, the PBOC highlighted that stablecoins lack proper customer identification and anti-money laundering protections, facilitating illicit activities like money laundering and fraud. This strict stance contrasts with the more favorable regulatory environment for stablecoins in Hong Kong, which operates under a separate jurisdiction and actively supports the crypto industry.

(Source：CoinDesk)