China Tightens Grip on Crypto: Stablecoins Face Scrutiny as Digital Assets Remain Out of Reach

China has taken a hard stance on cryptocurrencies, declaring they cannot function as legal tender within its borders. The People’s Bank of China (PBOC) has emphasized that virtual assets lack the legal protections afforded to the Chinese yuan and will not be accepted for payments or transactions. Businesses operating in this space face potential penalties if not adhering to clear regulatory guidelines. This move comes after high-profile failures of stablecoins in the US, triggering a global effort to contain emerging risks in the digital asset industry.