China Doubles Down on Crypto Ban Amid Stablecoin Warnings
- The PBOC, which is China’s central bank, says that all crypto activities are still against the law.
- They say that stablecoins could make it easier for people to commit fraud, launder money, and move money across borders without being caught.
- High-ranking officials from the courts, police, and regulators got together to talk about how to make things harder.
- People are starting to speculate on crypto again, which is why I’m writing this.
- This fits with China’s long-standing desire for its own digital yuan instead of other cryptocurrencies.
The people who keep an eye on China’s finances are still not giving up on cryptocurrencies. On November 29, 2025, the People’s Bank of China (PBOC) had a big meeting with other government groups. They talked about how to keep the ban on virtual currencies strong. This isn’t new; China banned mining in 2021 and crypto trading in 2017. But now they’re also blaming stablecoins.
Stablecoins are like digital dollars that don’t change in value. The PBOC says they don’t follow the rules that stop money laundering. People could use them to cheat people or to move money out of China illegally. This could hurt the country’s economy and make it less stable.
People all over the world are starting to like stablecoins. But in China, they are seen as a danger. The bank says that some people are betting on prices to make quick money. This has gone up a lot lately, which has led to more illegal deals. The Supreme People’s Court, the Procuratorate, the police, and market regulators were all there. They promised to “severely crack down” on these things together.
The PBOC says that virtual currencies are not real money in China. Companies can’t use them to make payments. This rule applies to Bitcoin, Ethereum, and stablecoins like USDT.
If you live in China, trading crypto could get you in trouble. The government wants to keep people safe from scams and make sure money keeps moving. They’ve seen risks like terrorism financing linked to these assets before, but that’s more of a global issue.
