China Renews Crypto Ban, Citing ‘Resurgent Speculation’ and Stablecoin Risks

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China’s central bank, the People’s Bank of China (PBOC), has reaffirmed its nationwide ban on cryptocurrency activities.

Following an inter-agency meeting, the PBOC stated that “virtual currency speculation has resurfaced,” posing new challenges. It declared that all crypto-related business activities are illegal financial activities, stressing that virtual currencies lack legal tender status.

The bank singled out stablecoins as a particular risk, asserting they fail to meet anti-money laundering requirements and are used in criminal activities. China first enacted a comprehensive ban on crypto trading and mining in 2021.