China’s central bank has once again reiterated its firm stance against cryptocurrency trading and mining, warning of growing risks linked to stablecoins during a recent high-level multi-agency meeting. The People’s Bank of China (PBoC), joined by top financial regulators, emphasized that the nationwide crypto ban remains fully enforced and that any unauthorized digital asset activity will face strict penalties. This renewed warning underscores China’s commitment to maintaining financial stability and preventing systemic risks tied to digital asset speculation.
During the meeting, officials highlighted the increasing global adoption of stablecoins—particularly USD-backed versions—which they argue pose potential threats to China’s capital controls, monetary sovereignty, and financial security. Regulators stressed that stablecoins, even if widely used outside the mainland, could indirectly impact domestic markets if left unchecked. The PBoC called for stronger monitoring mechanisms, enhanced coordination between agencies, and proactive enforcement to curb illicit cross-border crypto transactions.
While China has banned all forms of cryptocurrency trading and mining since 2021, underground activity persists. The central bank warned that stablecoins are increasingly being used to bypass restrictions, facilitate capital flight, and enable money-laundering operations. Authorities reaffirmed their intent to intensify crackdowns on intermediaries, foreign exchanges targeting Chinese users, and digital payment channels suspected of enabling crypto-related transactions.
The meeting also highlighted China’s ongoing push toward central bank digital currency (CBDC) development. Officials contrasted the risks of decentralized cryptocurrencies with the state-controlled digital yuan (e-CNY), positioning the CBDC as a safer, regulated alternative for digital payments. The PBoC reiterated that promoting the digital yuan remains a national priority, especially as global financial systems increasingly digitize.
Analysts note that China’s latest remarks reflect broader global concerns about stablecoin growth. As major economies debate regulatory frameworks for digital assets, Beijing is doubling down on strict oversight to safeguard monetary control. This stance is consistent with China’s long-standing preference for closed financial systems and tightly regulated capital flows.
The central bank’s renewed warnings send a clear message: China’s ban on cryptocurrency is not loosening, and stablecoins have now become an elevated area of scrutiny. For global markets, this signals continued divergence between China and crypto-embracing economies—especially as digital assets gain mainstream traction worldwide.
As regulatory pressures increase, the evolving relationship between China, cryptocurrencies, and global stablecoin markets will remain a critical area to watch in the months ahead.
