Overview
- Following a Nov. 28 coordination meeting, the PBOC said virtual-currency transactions are illegal and digital tokens are not legal tender in China.
- Stablecoins were singled out as failing KYC/AML requirements, with regulators warning of money laundering, fundraising fraud, and illegal cross-border transfers.
- Thirteen government bodies, including the Ministry of Public Security, the Cyberspace Administration, the Supreme People’s Court, and the CSRC, pledged stronger information sharing and closer tracking of key capital and data flows.
- The mainland stance has weighed on Hong Kong’s regulated push: crypto-linked shares fell on Monday, with Yunfeng Financial down more than 10%, Bright Smart about 7%, and OSL over 5%.
- Despite the 2021 ban, industry data indicate a resurgence of underground mining, with estimates placing China’s share of global Bitcoin hashrate at roughly 14%.