China Declares All Crypto Activity, Including Stablecoins, Illegal
China’s central bank moved to ban all crypto activity, singling out stablecoins in a policy shift announced after a multi-agency People’s Bank of China meeting on 28 November that addressed a renewed surge in virtual currency activity. Regulators argued stablecoins can mimic money, enable cross-border capital flows, and therefore pose a “serious threat” to monetary sovereignty and overall financial stability.
The declaration raises immediate operational and legal risks for exchanges, payment firms and offshore issuers serving Chinese users and could push more volume into peer-to-peer channels or foreign platforms. It also bolsters the case for wider adoption of the digital yuan as authorities tighten control over private alternatives. Investors and companies should expect increased enforcement and uncertainty, while global markets monitor potential spillovers as other jurisdictions reassess stablecoin frameworks.