China’s central bank (PBoC), speaking after a Nov. 29 interagency meeting, reiterated that cryptocurrencies have no legal status in the country and warned that related activities will be treated as illegal financial operations. Authorities singled out stablecoins as a particular concern for financial stability.

Stablecoins under scrutiny

Regulators emphasized shortcomings in identity verification and anti-money-laundering controls connected to certain stablecoins. The PBoC warned these weaknesses could enable unauthorized cross-border transfers and facilitate illicit finance, heightening systemic risk if left unchecked.

Market reaction

The announcements triggered immediate market moves: shares of companies tied to crypto exposure in Hong Kong fell sharply in the days following the statement, underscoring how quickly regulatory signals from Beijing reverberate across regional markets.

Mining and on-the-ground activity

Despite longstanding bans on trading and mining, reports indicate some mining activity persists in regions with low-cost power. Those operations appear to be smaller and more dispersed than before, but they suggest enforcement does not uniformly eliminate all on-the-ground activity.

Global implications

China’s renewed stance highlights the fragmented nature of global crypto policy: while some jurisdictions move to integrate digital assets into regulated frameworks, Beijing continues to restrict them. For international projects and investors, the message is clear — regulatory risk remains a central variable in global strategy and liquidity patterns.