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The People’s Bank of China has urged relevant government agencies to continue enforcing the ban on virtual currencies and to intensify efforts to combat related illegal financial activities. Since virtual currencies are not recognized as legal tender, they should not be used as official currencies, and engaging in related business activities remains illegal, the central bank stated during a coordination meeting on cryptocurrency trading and speculation held on November 28.
Stablecoins are a subset of virtual currencies, but they fail to meet essential requirements such as customer identity verification and anti-money laundering measures. As a result, they pose significant risks for illegal activities like money laundering, fraud involving fundraising, and cross-border illicit transfers, the bank warned.
The meeting took place amid a surge in virtual currency speculation and called for deeper collaboration among government agencies. It emphasized enhancing regulatory policies, focusing on critical activities such as information and capital flows, increasing intelligence sharing, strengthening monitoring capabilities, and cracking down on criminal operations.
Participants in the meeting included officials from the Ministry of Public Security, the Office of the Central Cyberspace Affairs Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission.
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