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Chinese central banks have reiterated that digital assets remain illegal in the country. She said that cryptocurrencies and related trading activities also pose financial risks and do not meet basic compliance requirements.
The People’s Bank of China said the ban would remain in effect after a coordination meeting on November 28.
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Why does China maintain its strict stance on the ban on cryptocurrencies?
At the meeting, Bank confirmed However, digital assets do not share the legal status of fiat currency and are not permitted as a means of payment in commercial transactions.
He added that business activities related to cryptocurrencies constitute illegal financial activities under Chinese law.
In particular, the Bank of the People’s Republic pointed to stablecoins, saying that they do not meet customer identification standards and anti-money laundering controls.
The bank said that this deficiency exposes it to abuse in money laundering operations, fundraising fraud, and illegal cross-border money transfers.
“Stablecoins, a form of virtual currency, currently fail to effectively meet customer identification and anti-money laundering requirements, which pose a risk of being used for money laundering, fundraising fraud, and illegal cross-border financial transfers,” the translated statement said.
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In this context, the Chinese authorities have said that they remain focused on strengthening risk prevention and ensuring compliance by companies and individuals with the country’s ban.
The announcement reflects Beijing’s continued commitment to strictly enforce regulations, even as other jurisdictions pursue more lenient regulatory paths.
China’s position That’s in contrast to the broader shift in major economies over the past year.
Governments around the world, including the United States, have introduced it Frameworks for the integration of digital assets In traditional financial markets. These actions drive greater industry partnership and institutional adoption.
However, China has maintained its 2021 blanket ban on the nascent industry.
Instead, the authorities continued to prioritize the development of a central bank digital currency, digital yuan, As the digital yuan advances in pilot areas and public sector payment systems.
Interestingly, despite the limitations, Underground cryptocurrency activity continues In the Asian country.
The reports indicated Continued use of virtual assets In part of the country. Reuters recently estimated that China now accounts for 14% of the global Bitcoin mining market, indicating a quiet return to cryptocurrency mining activity despite the national ban.
