China’s central bank convened a coordination meeting this week and reiterated that virtual assets, including stablecoins, are not recognized as legal tender in the country. The bank stated that transactions involving crypto-related instruments remain illegal due to persistent concerns around KYC and AML compliance, as well as risks linked to cross-border transfers.
Officials emphasized that unregulated digital asset activity continues to threaten financial stability and complicate enforcement of anti-fraud measures. Regulators plan to strengthen monitoring of platforms and intermediaries that attempt to facilitate crypto-based payments or remittances.
The renewed stance signals Beijing’s continued commitment to restricting private digital currencies while prioritizing development of its state-backed digital yuan. Authorities said coordinated efforts will focus on closing loopholes and preventing systemic risks tied to unauthorized virtual asset operations.
