PBOC reaffirms the ban on cryptocurrencies, warning against speculation and promising measures against illegal activities related to stablecoins.

The People's Bank of China (PBOC) has reaffirmed a strict stance towards virtual currencies, emphasizing that they have no legal status and cannot be used as a means of payment. During a meeting, the bank warned about the increase in speculation, which complicates the management of financial risks. PBOC identified stablecoins as a major risk, noting that they do not comply with customer identification and anti-money laundering regulations, making them vulnerable to illegal activities. The bank promised to intensify actions against illegal financial activities to protect economic stability. Although Hong Kong has begun regulating stablecoins, trading cryptocurrencies remains banned in mainland China since 2021. However, Bitcoin mining has seen a resurgence in certain regions due to lower energy costs.