China Reaffirms Cryptocurrency’s Illegal Status

China reaffirms cryptocurrency's illegal status, highlighting stablecoin risks.

During an interdepartmental meeting, the People’s Bank of China (PBOC) reaffirmed its stance on the illegal status of digital assets in the country and highlighted the risks associated with the use of stablecoins. 

The meeting included representatives from the Ministry of Public Security, the Cyberspace Administration, the Central Commission for Financial Stability and Development, the Supreme People’s Court, and other regulatory bodies. In this same composition, the authorities imposed a de facto ban on cryptocurrency trading in 2021.

“Virtual assets do not have the same legal status as fiat, are not legal tender, and should not and cannot be used as currency in the market,” stated the PBOC.

Officials also noted their intention to “strictly crack down on illegal and criminal activities” in this area.

The meeting was convened amid a “resurgence of speculative activity” with digital assets. The report emphasizes that previous bans on crypto trading and mining have “eliminated market chaos.”

Stablecoins have drawn particular attention from the central bank. The PBOC pointed out their non-compliance with anti-money laundering standards and their particular popularity among fraudsters. 

Local authorities appear unwilling to soften their rhetoric regarding digital assets. In August 2025, Chinese agencies demanded that brokerage firms and research centers cancel seminars and cease publishing studies on “stablecoins.”

Additionally, in September, the China Banking Regulatory Commission unofficially instructed several local brokers to suspend RWA business in Hong Kong. 

Despite strict regulation, the country’s share of the bitcoin mining hash rate exceeded 14%. As of early October, the figure was approximately 145 EH/s, increasing by 13.8% in one quarter.

Back in January 2024, the WSJ reported on methods to circumvent the ban on crypto trading in China.