- China says crypto and stablecoins aren’t legal money, and using them for payments or business is against the law.
- Officials warn that growing crypto activity is bringing scams, crime, and money risks back into the picture.
- China plans tougher checks and stronger rules to stop illegal trading and keep the financial system steady.
China has tightened its stance on crypto again, warning against Bitcoin, other digital coins, and stablecoins. The central bank said these currencies aren’t recognized as official money in China, and using them to make payments is illegal.
The statement followed a high-level meeting with several major government agencies, including public security, internet regulators, top courts, and financial watchdogs. Officials said crypto speculation has recently picked up again and is leading to illegal activities that could threaten financial stability.
China’s central bank said cryptocurrencies aren’t legally recognized in the country. Because of that, any business that uses or deals with crypto is considered illegal. It also noted that stablecoins don’t meet China’s rules for preventing money laundering or verifying users. Officials warn this could make them easier to use for things like laundering money, fraud, or moving funds across borders in illegal ways.
Government Coordination and Enforcement
The meeting stressed that China will continue to enforce its prohibitive policies on virtual currencies. Officials called for deeper coordination across departments to strengthen monitoring and regulation.
Additionally, they promoted strengthening legal frameworks to deal with new threats. Market monitoring, capital flow, and information flow were found to be critical areas that needed immediate action. Authorities also pledged to combat illicit activity while protecting residents’ property and preserving economic stability.
The meeting also tied the crackdown to broader political guidance. Officials instructed agencies to align with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement directives from the 20th National Congress. Consequently, financial risk prevention is described as a “perpetual theme” for all regulatory work.
