Mainland China has reiterated its anti-crypto stance, pledging to step up its crackdown on speculation in virtual currencies, according to a report from China Daily.
Virtual currencies do not have the legal status of fiat money and cannot be used as money on markets. All related activities are considered illegal financial operations, officials from the People’s Bank of China (PBOC), the Ministry of Public Security, the Central Cyberspace Affairs Commission and other agencies stressed at an inter-agency meeting convened on Friday.
Officials warned of a recent surge in speculative trading, which poses new financial risks and challenges.
Beijing has long supported an anti-crypto stance, targeting both the mining sector and speculative trading. Yet China has recently re-emerged as the third largest bitcoin in the world. mining center.
During the meeting, the People’s Bank of China warned that stablecoins – tokens linked to fiat currencies – lacked proper customer identification and anti-money laundering protections, enabling money laundering, illicit cross-border financing and fraud. These remarks stand in stark contrast to the increasingly favorable U.S. regulatory environment for stablecoins.
Although mainland China has reiterated its anti-crypto stance, Hong Kong operates under an autonomous and separate legal jurisdiction.
The Hong Kong government has supported the crypto industry, with stablecoins take center stage during the government-backed Hong Kong Fintech Week, and Financial Secretary Paul Chan opened the CoinDesk Consensus Conference as keynote speaker.
