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

Mainland China has reiterated its anti-crypto stance, vowing to intensify its crackdown on speculation in virtual currencies, according to a report by China Daily.

Virtual currencies lack the legal status of fiat money and cannot be used as currency in markets. All related activities qualify as illegal financial operations, officials from the People’s Bank of China (PBOC), Ministry of Public Security, Central Cyberspace Affairs Commission, and other agencies stressed during an inter-agency meeting convened on Friday.

Officials warned of a recent surge in speculative trading, which poses new financial risks and challenges.

Beijing has long upheld an anti-crypto stance, targeting both mining and speculative trading. Yet China has recently re-emerged as the world’s third-largest bitcoin BTC$90,993.53 mining hub.

During the meeting, the People’s Bank of China warned that stablecoins—tokens pegged to fiat currencies—lack proper customer identification and anti-money laundering protections, enabling money laundering, illicit cross-border financing, and fraud. These remarks contrast sharply with the U.S.’s increasingly favorable stablecoin regulatory environment.

Although mainland China has reiterated its anti-crypto posture, Hong Kong operates under an autonomous, separate legal jurisdiction.

Hong Kong’s government has been supportive of the crypto industry, with stablecoins taking center stage at the government-supported Hong Kong Fintech Week and Financial Secretary Paul Chan opening CoinDesk’s Consensus conference as a keynote speaker.