In a significant move that underscores its ongoing hostility towards cryptocurrency, the People’s Bank of China (PBoC) has reaffirmed its 2021 ban on crypto trading. This decision follows a noticeable resurgence in virtual currency speculation within the country, prompting officials to tighten regulatory measures once again.
During a recent gathering of the PBoC and 12 other government agencies, concerns were raised about the uptick in crypto trading activities that have been observed in the past months. As part of these discussions, officials clearly stated that virtual currencies lack the same legal status as fiat currency, reiterating their position that these digital assets cannot be utilized as currency in any markets.
The bank classified all activities associated with virtual currencies as illegal financial operations, a stance consistent with the original ban established in 2021, which targeted both trading and mining operations. Authorities cited the need for crime prevention and the maintenance of financial system stability as primary justifications for these prohibitions.
Particularly alarming for regulators are stablecoins, which were a focal point during the inter-agency meeting. The PBoC expressed grave concerns regarding tokens pegged to fiat currencies, stating that they often fall short of proper customer identification protocols and robust anti-money laundering protections. The bank highlighted that these deficiencies pose significant risks of money laundering and can be exploited for fundraising fraud and illegal cross-border fund transfers.
In response to these concerns, the agencies have committed to enhancing cooperation, particularly in terms of information sharing and monitoring capabilities, to effectively track crypto users and mitigate potential risks.
Interestingly, despite the stringent measures implemented against cryptocurrency, current data indicates that China remains a dominant player in the global Bitcoin mining arena, holding a 14% market share as of October 2025. This places the country as the third-largest Bitcoin mining hub worldwide, showcasing a paradox in its approach to cryptocurrency regulation.
In August, Chinese regulators made headlines by instructing brokers to cancel seminars related to stablecoins and to cease promotional research activities tied to these digital assets. Meanwhile, Hong Kong has taken a different approach, operating under a separate legal framework that allows for the licensing of stablecoin issuers, a divergence that has seen some tech companies reconsider their stablecoin launch plans amid pressure from mainland authorities.
As the PBoC continues its strict enforcement of anti-cryptocurrency measures, the overarching goal remains clear: to ensure stability in China’s economic and financial landscape. With directives firmly set against the backdrop of a rapidly evolving digital finance landscape, the future of cryptocurrencies in China seems poised for persistent challenges and regulatory scrutiny.
