China Confirms Crypto is Illegal: PBOC Warns of Risks and Increased Crackdown

In a decisive move, China’s central bank (PBOC) has reinforced its stance on cryptocurrency after a major meeting in November 2025. The PBOC explicitly stated that virtual assets, including stablecoins, lack legal status and cannot be used as currency in the market. This declaration follows recent increases in crypto activity, prompting officials to express concerns about illicit trading, scams, and cross-border money flows.