China Intensifies Crypto Ban: All Activities Now Illegal

China has intensified its ban on all crypto and stablecoin activities, declaring them illegal and lacking legal status. Authorities cite risks like money laundering and fraud, and promote the digital yuan as the sole legal digital payment option.

China's central bank has reaffirmed and intensified its comprehensive ban on virtual currencies and stablecoins, declaring all related activities illegal and emphasizing that these digital assets lack legal tender status. In a series of high-level meetings, authorities highlighted the risks associated with cryptocurrencies, including money laundering, fraud, and illegal capital flight, and noted a recent resurgence in speculative trading and underground transactions. The ban extends to all aspects of crypto activity, such as issuance, trading, exchange, and promotion, with stablecoins explicitly included. Officials stressed that virtual assets cannot be used as payment or for market circulation, and any business involving them constitutes illegal financial activity. While individuals may still hold digital assets as property, their use as currency is strictly prohibited. The central bank reiterated the need for strict law enforcement and enhanced monitoring to prevent financial instability, positioning the state-backed digital yuan as the only compliant digital payment option. This ongoing crackdown is expected to reshape the digital asset landscape in China and influence global crypto markets.