China reaffirms crypto ban after noticing ‘speculation has resurfaced’
China's central bank reaffirmed its strict cryptocurrency ban, citing resurfaced speculation and highlighting stablecoins as a major risk.Summary
The People’s Bank of China (PBOC) has reaffirmed its nationwide cryptocurrency ban, asserting that virtual currency speculation has resurfaced, which poses new challenges for risk control. The PBOC stated that virtual currencies lack legal tender status and that related business activities constitute illegal financial activities. A particular concern highlighted by the bank is stablecoins, which it claims do not meet legal requirements for customer identification and Anti-Money Laundering (AML), making them susceptible to use in money laundering and fraud. Following a meeting with 12 other agencies, the PBOC vowed to persistently crack down on illegal crypto financial activities to maintain economic stability. The participating agencies agreed to deepen coordination and information sharing to track down crypto users.
(Source：Cointelegraph)