China Tightens Crypto Grip: PBOC Reiterates Ban and Focuses on Risk Mitigation

The People’s Bank of China (PBOC) has reinforced its stance against cryptocurrencies, including stablecoins, emphasizing their potential to disrupt financial stability. In a recent meeting with 12 regulatory agencies, the PBOC voiced concerns about rising virtual currency speculation and highlighted the need for stronger risk management frameworks. They stressed that virtual currencies differ from traditional money and should not be used as such in financial markets. The central bank reiterated its ban on crypto trading and mining implemented in 2021, citing a desire to curb illegal activities and safeguard the financial system.