Cryptocurrencies in China: banned, risky, illegal

❌ The Central Bank of China issued an official statement on the status of virtual assets

On November 28, 2025, the People’s Bank of China (PBOC) held a coordination meeting on cryptoassets, where it emphasized that virtual assets, including cryptocurrencies and tokens, are not money and do not have the status of legal tender within the country. Any activity involving such assets, including buying, selling, exchanging, or using them for payments, is considered an illegal financial operation and is subject to all applicable state regulatory and supervisory measures.

“Recently, under the influence of various factors, speculation with virtual currencies has once again intensified, and illegal and criminal activities associated with it have occurred periodically, creating new challenges and new situations for risk prevention and control,” the statement said.

The regulator particularly noted that stablecoins — tokens pegged to fiat currency or assets — also fall under the category of virtual assets and carry serious financial and legal risks. This is primarily due to the fact that many stablecoin issuers do not comply with customer identification (KYC — Know Your Customer) and anti-money laundering (AML — Anti-Money Laundering) requirements.

Among the main threats highlighted by the Chinese regulator for investors and market participants:

• The possibility of money laundering through anonymous or poorly regulated crypto platforms;
• Illegal cross-border transfers that bypass the banking system and state control;
• High volatility and the absence of guarantees, which can lead to loss of funds;
• Legal uncertainty, due to which market participants cannot rely on protection in the event of disputes or fraudulent schemes.

The PBOC reminded that any financial activity involving virtual assets in China is subject to strict control and may result in criminal or administrative liability. The central bank also urged citizens and companies to refrain from participating in investments or operations with cryptocurrencies and stablecoins, emphasizing that the state is actively combating illegal schemes in the sphere of digital finance.

The regulator’s statement also notes that the measures are aimed at protecting financial stability and preventing systemic risks to the country’s banking and payment infrastructure. Any attempt to circumvent the established rules is regarded as a serious violation of financial legislation.

🔥 Thus, China has once again confirmed its strict position against cryptocurrencies and virtual assets, emphasizing control, security, and transparency of financial operations, as well as the need for strict compliance with international KYC and AML standards.