China’s central bank has once again reinforced its uncompromising stance on digital assets. During a meeting on November 28, 2025, the People’s Bank of China (PBOC) reiterated that virtual assets, including cryptocurrencies and stablecoins, remain fully prohibited across the mainland.
Officials stressed that these assets do not possess the legal status of fiat currency and cannot be used in any form of market circulation within China.
Stablecoins Under Intensified Scrutiny
A major focus of the meeting was the financial risk posed by stablecoins. Regulators warned that these instruments fail to meet essential compliance requirements such as KYC and anti-money-laundering standards.
According to the PBOC, this lack of transparency exposes stablecoins to misuse in fraud schemes, money laundering operations, and unauthorized cross-border capital flows. Officials argued that the speculative nature of these assets can also increase volatility and weaken global financial stability.
Reinforced Crackdowns and Law-Enforcement Coordination
The PBOC said it will continue working closely with public-security agencies to target illegal virtual-currency activity, including trading, fundraising, and speculation. China has enforced one of the world’s strictest crypto regimes since its sweeping 2021 ban on mining and centralized exchange operations. Regulators emphasized that these enforcement campaigns will remain a priority as the country seeks to eliminate unregulated digital-asset usage.
Digital Yuan Remains the Approved Path Forward
At the same time, the PBOC reaffirmed its commitment to the digital yuan (e-CNY), describing the state-backed CBDC as a secure and compliant infrastructure for digital payments. The bank aims to further expand real-world trials and integrations as part of its long-term monetary-technology strategy.
Diverging Policies Between Mainland China and Hong Kong
While Beijing continues to tighten restrictions, Hong Kong has been developing a regulated framework for stablecoins and digital-asset service providers. Analysts view the city’s approach as a controlled environment for experimentation, but note that mainland China’s stance remains unchanged and strongly prohibitive.
