China has reaffirmed its ban on cryptocurrency trading, focusing its efforts on stablecoins and curbing illegal activity. The People’s Bank of China (PBOC) outlined a significant regulatory enforcement plan, seeking to curb cross-border crypto transfers and combat fraud. This move aims to reduce the impact of illicit activities and further restrict virtual assets within the country. The PBOC emphasized that digital currencies lack legal status in China, making stablecoins inadmissible as currency. A meeting involving government agencies including the Ministry of Public Security and the Cyberspace Administration solidified this stance, highlighting the need for stricter measures against illegal fundraising and cryptocurrency transactions. This ban is expected to have significant consequences for Chinese crypto markets, potentially impacting on-shore DeFi activities, liquidity, and market sentiment, while also creating a ripple effect across the global landscape.