China Reaffirms Nationwide Crypto Ban, Warns Against Stablecoins

China Reaffirms Its Crypto Ban and Issues a Warning on Stablecoins

The People's Bank of China once again reiterated that all crypto-related activities remain fully illegal following its meeting dated November 28.

Crypto assets are not considered fiat currency under the law, and can't be used for payment inside China.

According to Chinese law, any business activity involving crypto is considered unlawful financial activity.

The PBOC also specifically warned about stablecoins, which, it said, cannot meet the relevant requirements for customer identification and anti-money-laundering standards. This makes them very vulnerable to being misused for laundering, fraud schemes, illicit fundraising, and unauthorized cross-border transfers.

China said it would continue to roll out more risk prevention measures and strictly enforce the nationwide ban.

While the United States and most major economies forge ahead in building integrated regulatory frameworks for digital assets, China remains very much focused on developing its digital yuan, the e CNY.

That ban has not stopped underground crypto activity. Reuters estimates that China now accounts for about 14 percent of the global Bitcoin hashrate.

That said, is Chinese BTC mining the largest? Does anybody remember the May 2021 crash because China banned BTC?