China Reaffirms Cryptocurrency Ban with Focus on Stablecoin Crackdown

China's central bank has doubled down on its nationwide cryptocurrency prohibition, signaling heightened enforcement efforts against stablecoins during a high-level interagency meeting. The People's Bank of China (PBOC) convened representatives from twelve regulatory bodies, including the Ministry of Public Security and Supreme People's Court, to coordinate suppression of digital asset activities.

Authorities specifically targeted stablecoins as systemic risks, citing their potential to circumvent capital controls and destabilize financial markets. The crackdown expands existing measures against speculative trading, unlicensed platforms, and crypto-related crimes under China's stringent capital FLOW regime.

This development follows August 2025 directives requiring securities firms to terminate cryptocurrency services, continuing China's multi-year campaign against decentralized finance. No exceptions were made for algorithmic or asset-backed stablecoins, reflecting Beijing's uncompromising stance toward monetary sovereignty.