China Upholds Crypto Ban, Highlights Stablecoin Risks
China Reaffirms Crypto Ban Amid Stablecoin Concerns
China's central bank has reiterated the prohibition on digital currencies, highlighting financial risks and regulatory non-compliance.Following a recent meeting, the People's Bank of China (PBOC) confirmed the ongoing ban on cryptocurrencies, emphasizing their lack of legal status equivalent to fiat currency and their prohibition in commercial transactions.
Stablecoins Under Scrutiny
The PBOC identified stablecoins as particularly problematic, citing deficiencies in customer identification and anti-money laundering standards, which could lead to misuse in illicit activities such as money laundering and illegal capital transfers.
"Stablecoins, as virtual currencies, currently do not meet customer identification and anti-money laundering requirements, posing risks of misuse," the PBOC stated.
Chinese authorities remain committed to strict enforcement, contrasting with global trends towards regulatory integration of digital assets.
While other countries, including the U.S., are embracing digital assets within traditional financial systems, China focuses on advancing its central bank digital currency, the e-CNY.
Despite these restrictions, underground crypto activities continue, with China reportedly accounting for 14% of global Bitcoin mining.