Catenaa, Monday, December 1, 2025- China’s central bank restated its long-held position that digital asset activities remain illegal on the mainland, issuing a fresh warning on stablecoin risks after a multi-agency meeting in Beijing.
The People’s Bank of China said virtual currencies lack legal tender status and cannot be used in the domestic market.
Officials said speculation has resurfaced despite the government’s sweeping 2021 trading and mining ban.
The central bank said enforcement has curbed disorder in the market but pledged to intensify action against unapproved digital asset activity. Thirteen government bodies took part in the meeting, reflecting growing concern about renewed trading and fundraising tied to crypto assets.
Stablecoins received pointed attention. The PBoC said these products fall short of anti-money-laundering and customer identification rules.
It warned of risks tied to illicit transfers, underground payment networks and fraudulent schemes. Authorities said these issues threaten financial security and demand stricter oversight.
China continues to enforce a complete ban on crypto trading and mining, while Hong Kong operates a licensing framework for exchanges and stablecoin issuers.
The difference has created tension, and Beijing has recently moved to slow some tokenization and stablecoin initiatives in the territory. Officials have also pressed major Chinese firms to halt attempts to issue stablecoins abroad.
The central bank noted ongoing adoption of its digital yuan pilot, with more than 225 million personal wallets opened.
Former PBoC governor Zhou Xiaochuan has also cautioned that excessive stablecoin use could foster speculation and destabilize markets.
