China Reinforces Crypto Crackdown as Stablecoin Adoption Grows in Asia

China's central bank governor Pan Gongsheng has reaffirmed the nation's hardline stance against cryptocurrency activities, vowing to intensify crackdowns on domestic speculation. The People's Bank of China will collaborate with law enforcement to suppress crypto-related operations, framing these measures as crucial for maintaining economic stability.

The policy reinforcement comes alongside national security concerns about foreign entities allegedly harvesting biometric data through crypto projects. While no specific company was named, the description matches Worldcoin's iris-scanning verification system. This development highlights growing tensions between China's closed financial system and global crypto innovation.

Stablecoins have emerged as a particular concern for Chinese regulators, with the PBOC identifying them as potential vectors for financial instability. The warning coincides with rapid Asian adoption of dollar-pegged tokens, creating a regulatory divergence across the region.