The People's Bank of China convened a meeting of the coordination mechanism for combating virtual currency trading and speculation, bringing together law enforcement, judicial, financial and industrial authorities. The meeting noted a recent rebound in speculative activity and associated illegal conduct, and reiterated that virtual currencies do not have the legal status of legal tender, cannot be used as money in circulation, and that related business activities constitute illegal financial activity. The meeting also treated stablecoins as a form of virtual currency, warning they currently cannot effectively meet customer identification and anti-money laundering requirements and may be misused for money laundering, fundraising fraud and illicit cross-border fund transfers. Authorities were asked to maintain the prohibitive policy stance, strengthen joint action, improve supervisory policies and legal underpinnings, and enhance monitoring and information sharing focused on key links such as information flows and fund flows.
Central Bank of the Republic of China2025-11-29
People's Bank of China convenes inter-agency mechanism meeting to reaffirm virtual currency ban and step up enforcement
The People's Bank of China met with authorities to address a rebound in virtual currency speculation and illegal activities, reiterating that virtual currencies lack legal tender status and related activities are illegal. Stablecoins were highlighted as unable to meet anti-money laundering requirements and potentially misused for illicit activities. Authorities were urged to uphold prohibitive policies, enhance supervision, and improve monitoring and information sharing.