China affirms tough stance on cryptocurrencies

Trụ sở Ngân hàng Trung ương Trung Quốc (PBoC) tại Bắc Kinh. (Ảnh: AFP/TTXVN)

Headquarters of the People's Bank of China (PBoC) in Beijing. (Photo: AFP/VNA)

The People's Bank of China (PBoC, the central bank) on November 29 reaffirmed its tough stance on cryptocurrencies, warning of a resurgence in speculation and pledging to crack down on illegal activities related to stablecoins.

In a statement issued after a coordination meeting on cryptocurrency regulation held on November 28, the PBoC said that cryptocurrency speculation has recently increased due to various factors, posing new challenges to financial risk control. The central bank stressed that cryptocurrencies do not have the legal status of fiat money and cannot be used as a legal means of payment in the market.

Notably, the PBoC has raised particular concerns about stablecoins – cryptocurrencies pegged to a stable asset such as the US dollar or gold. The PBoC believes that stablecoins do not meet customer identification and money laundering control requirements, thus posing a risk of being used for illegal activities including money laundering, fraud and illegal cross-border transfers.

China's central bank said it will step up efforts to combat these illegal financial activities, aiming to maintain domestic economic and financial stability.

Previously in October, PBoC Governor Pan Gongsheng announced that he would continue to tighten control over domestic cryptocurrency operations and speculation, while closely monitoring and evaluating the development of stablecoins abroad.

The Chinese government has banned cryptocurrency trading since 2021. However, bitcoin mining is quietly returning to the country despite the ban, as many individuals and businesses want to take advantage of cheap electricity and the boom in data centers in some localities.

Source: https://vtv.vn/trung-quoc-khang-dinh-lap-truong-cung-ran-doi-voi-tien-dien-tu-100251130093203602.htm