Featured News Headlines
China Labels Stablecoins a Risk as Authorities Tighten Crypto Controls
China is tightening its stance on digital assets once again, with the People’s Bank of China (PBoC) warning that stablecoins and renewed crypto speculation pose risks to financial stability. The announcement follows a meeting between the central bank and 12 other government agencies, signaling a coordinated push to reinforce Beijing’s long-standing restrictions on crypto activity.
PBoC Warns “Virtual Currency Speculation Has Resurfaced”
The PBoC said on Saturday that crypto speculation has re-emerged, driven by multiple factors that are creating “new challenges for risk control.” The central bank reiterated that virtual assets lack the legal status of fiat money and therefore “should not and cannot be used as currency in the market.”
According to the bank, all virtual currency–related business activities remain illegal, reaffirming policies first enacted during China’s sweeping 2021 ban on crypto trading and mining.
Stablecoins Under Intensified Scrutiny
While the PBoC maintains a broad opposition to crypto, it singled out stablecoins as a particular concern. The bank said the tokens fail to meet legal standards, especially around customer identification and Anti-Money Laundering (AML) requirements.
Because of these gaps, the PBoC warned, stablecoins face an elevated risk of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. The central bank pledged to “persistently crack down” on any crypto activity deemed unlawful to protect China’s economic and financial order.
Regulators Expand Efforts as Mining Activity Persists
The 13 agencies involved in the meeting committed to strengthening coordination by improving information sharing and enhancing monitoring systems to track crypto users more effectively.
Despite China’s ban, the country remains a major player in Bitcoin mining. According to Reuters, China held the third-largest share of global Bitcoin mining, accounting for 14% of market share by late October.
Recent regulatory actions reflect the same concerns: in August, financial authorities reportedly instructed brokers to halt stablecoin-related seminars and research promotion. Meanwhile, Hong Kong’s move to license stablecoin issuers has faced delays as Chinese regulators reportedly intervened, causing some companies to pause launch plans.
China’s latest warning signals that its crackdown is far from over—especially as stablecoins draw increased attention from regulators nationwide.
