Mainland China has reiterated its anti-crypto stance, vowing to intensify its crackdown on virtual currency speculation, according to a China Daily report.
Virtual currencies lack the legal status of fiat money and cannot be used as currency in markets. All related activities qualify as 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 during 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 maintained an anti-crypto stance, targeting both mining and speculative trading. However, China has recently re-emerged as the world’s third largest bitcoin. mining center.
During the meeting, the People’s Bank of China warned that stablecoins (tokens pegged to fiat currencies) lack proper customer identification and anti-money laundering protections, enabling money laundering, illicit cross-border financing and fraud. These comments stand in stark contrast to the increasingly favorable regulatory environment for stablecoins in the United States.
Although mainland China has reiterated its anti-crypto stance, Hong Kong operates under a separate, autonomous legal jurisdiction.
The Hong Kong government has supported the crypto industry, with stablecoins take center stage at the government-backed Hong Kong Fintech Week, and Finance Secretary Paul Chan opened the CoinDesk consensus conference as a keynote speaker.
