The Central Bank of China reiterates the ban on digital assets, and stablecoins are strongly prohibited due to compliance risks.

Source: BlockMedia Original Title: China, “Digital assets still illegal” – Strong ban on stablecoins Original Link: https://www.blockmedia.co.kr/archives/1012846

The People's Bank of China Reiterates the Ban on Digital Assets

The People's Bank of China ( PBOC ) has once again confirmed its existing strict prohibitions on digital assets ( and virtual assets ).

According to the latest reports, the People's Bank specifically pointed out that stablecoins fail to meet the customer identification ( KYC ) and anti-money laundering ( AML ) control standards.

The People's Bank reaffirmed the illegal status of virtual assets after the adjustment meeting held on November 28 and announced that the comprehensive ban measures remain in effect.

The background of China's “super strict” cryptocurrency ban

The People's Bank reiterated in the meeting that digital assets do not have the legal status of legal tender and are not allowed to be used as a means of payment in commercial transactions.

In addition, cryptocurrency-related business activities are classified as illegal financial activities under Chinese law.

The People's Bank of China specifically pointed out that stablecoins fail to meet the customer identification ( KYC ) and anti-money laundering ( AML ) control standards. The central bank emphasized in its statement: “As a form of digital asset, stablecoins currently do not effectively meet customer identification and anti-money laundering requirements, and there are risks of being used for money laundering, fraudulent financing, and illegal cross-border capital transfer.”

For these reasons, Chinese authorities have stated that they will continue to strengthen risk prevention and ensure that enterprises and individuals comply with domestic prohibitions.

China's strategy against the global trend

This statement reflects China's continued willingness to uphold the comprehensive ban measures from 2021, contrasting sharply with the approaches of other countries. Major global economies, such as the United States, are developing frameworks to integrate digital assets into traditional financial markets, promoting industry participation and institutional adoption.

China prioritizes the development of central bank digital currency ( CBDC )—digital renminbi ( e-CNY ), promoting the application of digital renminbi in pilot areas and public sector payment systems. This initiative is analyzed as aiming to prevent the spread of cryptocurrencies and strengthen capital controls.

“Underground activities” under strict regulation

Interestingly, despite strict regulations, underground activities involving cryptocurrencies continue.

It is estimated that despite the implementation of a comprehensive mining ban, China currently accounts for 14% of the global Bitcoin mining market. This indicates that the regulatory efforts of Chinese authorities have not completely closed off the market.