China Bans Crypto Activities Including Stablecoins

China’s central bank is shifting its focus away from volatile cryptocurrencies like Bitcoin towards stablecoins, warning of their potential threat to financial stability. The People’s Bank of China (PBOC) held a multi-agency meeting to address the growing activity in the virtual currency market, reaffirming that all crypto activities are now illegal. This shift specifically targets stablecoins, which officials have highlighted for lacking adequate customer identification and anti-money laundering safeguards. Tether and Circle’s USDC, two prominent stablecoin examples, are expected to face increased scrutiny as investigations begin. ,