Mainland China has reaffirmed its tough stance on virtual currencies, announcing that it will intensify its crackdown on speculative trading.
During an inter-agency meeting, officials from the People’s Bank of China, the Ministry of Public Security, and the Cyberspace Administration stressed that digital currencies lack legal status and cannot function as money. They added that all related activities qualify as illegal financial operations.
Authorities warned that a recent surge in speculative trading is creating new financial risks. The PBOC also issued a specific warning about stablecoins, saying these tokens lack robust know-your-customer and anti-money-laundering protections. This makes them vulnerable to fraud, cross-border illegal financing, and money-laundering schemes.
The renewed crackdown comes even as China has re-emerged as the world’s third-largest Bitcoin mining hub.
In contrast, Hong Kong continues to promote a regulated digital-asset ecosystem under its separate legal framework. The city has showcased stablecoins and hosted global crypto leaders during Hong Kong Fintech Week and Consensus.
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