China’s Central Bank Warns of Renewed Crypto Speculation, Targets Stablecoins
The People’s Bank of China (PBOC) on Saturday renewed its warning over digital-asset risks, flagging a resurgence in speculative behavior and saying it will step up enforcement against illegal activities tied to stablecoins. The statement underscores Beijing’s continued intolerance for privately issued digital assets and signals tighter oversight of onshore platforms that facilitate trading, issuance or cross-border transfers involving stablecoins.
Why it matters: tougher enforcement could squeeze liquidity, raise compliance costs for crypto firms, and push more activity offshore, increasing fragmentation between China and global markets. Market participants and stablecoin issuers should expect heightened scrutiny and potential operational constraints; for traders, the announcement raises the prospect of short-term volatility as firms and users reassess risk exposure under a renewed regulatory crackdown.