China Reasserts Crypto Ban as Beijing Doubles Down on e-CNY Plans

China has once again made its position unmistakably clear: digital assets remain outlawed within its borders. Following a high-level coordination meeting held on November 28, the People’s Bank of China (PBOC) reaffirmed that cryptocurrencies and related commercial activity continue to violate national financial laws and regulatory standards.

According to the central bank, virtual currencies cannot be treated as legal tender, nor can they be used for payments in any commercial setting. Regulators emphasized that the existing prohibition—originally enforced in 2021—remains fully intact, covering everything from crypto transactions to exchange services and token-linked fundraising activities.

The PBOC specifically highlighted stablecoins as a growing concern. Officials said these tokens fail to meet China’s strict requirements for customer verification and anti-money-laundering protocols, leaving them vulnerable to use in fraudulent fundraising, illegal remittances, and other illicit financial flows. The statement underscored that such shortcomings classify stablecoin-related activity as illegal under Chinese law.

Authorities said they will continue tightening risk controls and strengthening enforcement to prevent both corporate and individual violations. The stance underscores a widening regulatory divide between China and major global economies, many of which have spent the past year integrating digital assets into traditional financial markets through structured regulatory frameworks.

While the rest of the world experiments with crypto innovation, China has stayed the course on its 2021 ban. Instead, the government has funneled its focus into scaling the digital yuan, or e-CNY, expanding pilot programs across multiple regions and embedding the currency into public-sector payment infrastructure.

Despite the sweeping restrictions, underground crypto usage persists. Analysts and recent reporting have noted that virtual asset activity continues quietly throughout the country. Reuters estimates that China accounts for roughly 14% of the global Bitcoin mining market, signaling a significant—if unofficial—resurgence in mining operations across the region.

Beijing may be clamping down harder, but the crypto economy in China appears far from extinguished.