Chinese central banks have reiterated that cryptocurrencies remain illegal within their jurisdiction.
The People's Bank of China stated that stablecoins particularly fail to meet identification standards and anti-money laundering criteria.
Despite the comprehensive ban, the clandestine use and mining of digital currencies continue within the country.
The Chinese central banks have reaffirmed that digital assets remain illegal in the country. It stated that cryptocurrencies and related business activities still pose financial risks and do not meet basic compliance requirements.
The People's Bank of China stated that the ban remains in effect after a coordination meeting on November 28.
Why does China maintain its strict stance on banning cryptocurrencies?
At the meeting, the bank reiterated that digital assets do not share the legal status of legal tender and are not allowed as a means of payment in commercial transactions.
It added that cryptocurrency-related business activities constitute illegal financial activity under Chinese law.
In particular, the People's Bank of China pointed to stablecoins, stating that they do not meet customer identification standards and anti-money laundering controls.
The bank mentioned that this deficiency exposes them to misuse in money laundering, fundraising fraud, and illegal cross-border financial transfers.
The translated statement said, "Stablecoins, a form of virtual currency, currently fail to meet the requirements for customer identification and anti-money laundering effectively, posing a risk of being used for money laundering, fundraising fraud, and illegal cross-border financial transfers."
In this context, Chinese authorities have stated that they remain focused on tightening risk prevention and ensuring compliance by companies and individuals with the country's ban.
The announcement reflects Beijing's ongoing commitment to strictly enforce regulations, even as other jurisdictions follow more lenient regulatory paths.
China's stance contrasts with the broader shift in major economies over the past year.
Governments around the world, including the United States, have introduced frameworks to integrate digital assets into traditional financial markets. These measures drive greater industry partnership and institutional adoption. However, China has maintained its comprehensive ban on the emerging industry since 2021.
Instead, authorities have continued to prioritize the development of the central bank digital currency, the digital yuan, as it progresses through experimental zones and public sector payment systems. Interestingly, despite the restrictions, cryptocurrency infrastructure activity has continued within the Asian country.
Reports have indicated the continued use of virtual assets in parts of the country. Reuters recently estimated that China now accounts for 14% of the global Bitcoin mining market, indicating a quiet return of cryptocurrency mining activity despite the national ban.
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