The post China has declared all crypto activity, including stablecoins, “illegal”. appeared on BitcoinEthereumNews.com.

China’s central bank has shifted its attention from volatile crypto currencies like Bitcoin to stablecoins, warning that the tokens represent a deep threat to monetary sovereignty and financial order.    On 28 November, the Peoples Bank of China (PBOC) held a multi-agency meeting to address a fresh rise in virtual currency activity. China’s top financial, judicial and cybersecurity bodies reaffirmed that all crypto related activity is illegal. The most significant shift is the singling out stablecoins. Officials warned that they fall short of basic requirements for customer identification and anti-money laundering safeguards. Stablecoins such as Tether (USDT) and Circle’s USDC were specifically mentioned and may be central to upcoming investigations. Tether makes up the overwhelming majority of traded tokens since the 2021 blanket crypto ban, said Roger Huang, author of Would Mao Hold Bitcoin. “Traders gravitate toward Tether because its spreads are relatively low and it supports a broad set of trading pairs. When a token isn’t listed on major exchanges like Huobi or Binance, they can simply transfer their Tether to smaller exchanges that do list it.” Underground crypto persists despite ban Numerous reports indicate that cryptocurrency trading activity in mainland China has increased this year. At the meeting, officials discussed stepping up coordination, improving information sharing, strengthening regulatory frameworks and law enforcement. Roger Huang said that crypto fundraising currently operates under a “don’t ask, don’t tell” principle. While warnings from the Communist Party create significant waves among institutional investors, they function as a form of “social self-censorship” for everyday people. He said for many Chinese investors crypto is a logical alternative to the current housing and stock market. “China is experiencing a period of deflation. Youth unemployment is extremely high, at roughly 20 percent. Housing prices, especially in major tier one cities, have seen significant declines and traditional…

---

Filed under: News - @ December 5, 2025 6:22 am