China’s central financial institution has reasserted its strict prohibition on crypto buying and selling following indicators of renewed hypothesis in digital belongings.
The Individuals’s Financial institution of China convened a high-level assembly on November 28, 2025, with 13 authorities companies to coordinate enforcement and crack down on unlawful digital forex actions which have just lately resurfaced regardless of years of sweeping bans.
The assembly particularly flagged stablecoins as posing dangers for cash laundering, fraud, and unlawful cross-border fund transfers.
Officers emphasised that digital currencies lack authorized tender standing and can’t perform as cash in China’s markets, whereas associated enterprise actions represent unlawful monetary conduct that undermines financial stability.
Hong Kong Shares Tumble on Central Financial institution Warning
In accordance with Reuters, Hong Kong-listed corporations with crypto publicity noticed sharp losses following the announcement of a renewed crackdown.
Yunfeng Monetary Group, which has been increasing into tokenization companies, dropped greater than 10% in early Monday buying and selling. Vibrant Sensible Securities fell roughly 7%, whereas digital-asset platform OSL Group misplaced over 5%.
The selloff mirrored market fears that Beijing’s hardline stance may derail Hong Kong’s ambitions to change into a digital asset hub.
The town handed stablecoin laws in Might and acquired expressions of curiosity from greater than 40 corporations searching for licenses beneath its new regulatory framework, together with main monetary establishments like Circle and Customary Chartered.
Liu Honglin, founding father of Man Kun Legislation Agency, mentioned the central financial institution assertion “has erased any ambiguity, hypothesis and illusions” round China’s stablecoin insurance policies, noting that “regulators have drawn a concrete crimson line on what was a obscure borderline.“
Underground Mining and Enforcement Challenges Persist
Regardless of China’s complete ban on crypto buying and selling and mining since 2021, enforcement stays tough.
Latest information from Luxor’s World Hashrate Map reveals China nonetheless accounts for 14.05% of Bitcoin’s whole computing energy, or roughly 145 exahashes per second, putting it third globally behind the USA and Russia.
Authorities have uncovered a number of underground operations in current months.
China was as soon as the undisputed middle for Bitcoin mining. Recognized for its low-cost energy and entry to main {hardware} producers, all of this positioned China as a frontrunner in international Bitcoin mining. Nevertheless, this modified when mining was banned by the Chin…https://t.co/pdUtTHeFKw
— Cryptonews.com (@cryptonews) October 23, 2025
In February, police dismantled a cross-border banking community that laundered over $136 million utilizing crypto to bypass monetary laws.
Investigators famous that 18 out of 49 underground banking instances in 2023 concerned digital forex transactions, demonstrating how criminals adapt to take advantage of digital belongings.
The central financial institution has additionally ordered social media platforms to close down accounts selling crypto buying and selling.
In Might, the Our on-line world Administration of China closed greater than a dozen accounts on Weibo, Douyin, and WeChat that have been spreading false info and inducing residents to take part in digital forex transactions by means of offshore exchanges.
Equally, in August, Chinese language regulators instructed brokerages and analysis establishments to halt the publication of research or the internet hosting of seminars on stablecoins.
Native governments in Beijing, Suzhou, and Zhejiang have issued warnings about illicit fundraising linked to digital currencies.
On the similar time, over-the-counter crypto buying and selling volumes reached an estimated $75 billion within the first 9 months of 2024.
Stablecoins Draw Intensified Regulatory Scrutiny
Chinese language officers have expressed specific concern in regards to the international enlargement of dollar-backed stablecoins, which they view as a strategic menace to the renminbi’s internationalization.
The sector’s whole market capitalization surpasses $300 billion, with Tether and USD Coin processing over $27 trillion in settlements over the previous 12 months.
Pan Gongsheng, governor of the Individuals’s Financial institution of China, beforehand warned that stablecoins “have amplified weaknesses within the international monetary system” and fail to fulfill primary necessities for buyer identification and anti-money laundering controls.
The central financial institution has blocked main Chinese language tech corporations, together with Ant Group and JD.com, from issuing stablecoins in Hong Kong, arguing that forex issuance should stay a state monopoly.
Wang Yongli, former deputy governor of the Financial institution of China, wrote in June that the dominance of USD-pegged stablecoins “poses a strategic problem” to the renminbi’s internationalization, warning that China’s efforts to advertise its forex overseas may face “critical obstacles” with out aggressive digital options.
The assembly concluded with officers vowing to deepen coordination throughout companies, enhance monitoring capabilities, and severely crack down on unlawful actions to guard residents’ property and preserve financial order.
Beijing continues selling its state-backed digital yuan as the one reliable various to personal cryptocurrencies whereas sustaining zero tolerance for them.
The submit China Doubles Down on Crypto Ban After Detecting New Buying and selling Exercise appeared first on Cryptonews.