The People's Bank of China reaffirmed its ban on cryptoassets and stablecoins.
Date: 2025-12-01 Author: Henry Casey Categories: CRYPTO PAYMENTS, IN WORLD
The People's Bank of China (PBC) held a joint meeting on November 28, 2025, with the Ministry of Public Security, the CAC, the Supreme People's Court, the Procuratorate, and other government agencies. The discussion focused on the growing activity in the cryptocurrency space and the associated risks. The meeting resulted in a re-examination of the legal status of digital assets, emphasizing that the circulation of cryptocurrencies and stablecoins remains illegal in the country.
Agency representatives recalled that back in 2021, a document was adopted that effectively eliminated the possibility of legal trading in virtual currencies. Over the past years, according to the regulator, authorities have consistently adhered to these regulations, monitored market activity, and prevented violations.
The official statement emphasizes that despite strict measures, interest in the crypto market in the country has again increased. Speculative transactions have become more frequent, and along with them, the share of violations, including fraud and other illegal activities, has grown. Regulators believe that this trend poses additional challenges to financial stability and requires an even stricter approach to control.
In its clarification, the Central Bank highlighted several key points. First, cryptoassets cannot be considered an analogue of the national currency and do not have the same legal status as fiat. Second, virtual coins and tokens are prohibited as a means of payment and cannot be used in commercial or trading activities. Any transactions with them are considered illegal. It is specifically emphasized that stablecoins are also included in the category of prohibited assets, as they do not comply with AML/CTF requirements and pose risks to the financial system. The state intends to continue its tough regulatory approach.
There had been previous speculation that the government might reconsider its stance on stablecoins, and some tech companies had even considered issuing them in Hong Kong. However, following today's announcement, such initiatives were put on hold.
Despite the ban on the cryptocurrency market, the country remains among the world's leaders in hashrate, occupying a key position in the mining industry. This highlights the contradictory nature of the situation: the infrastructure is actively operating, but its commercial use within the country remains prohibited.
The announcement cemented China's current policy stance and made it clear that the government will continue to strictly restrict the crypto sector.
