China Doubles Down on Crypto Ban Amid Stablecoin Concerns
China's central bank has reinforced its sweeping cryptocurrency prohibition, citing renewed speculative trading activity and systemic risks posed by stablecoins. The People's Bank of China convened a 13-agency task force to coordinate enforcement of the 2021 ban, specifically highlighting dollar-pegged tokens as potential vectors for financial crime.
Despite the crackdown, China maintains surprising relevance in crypto markets - accounting for 14% of global Bitcoin mining capacity as of October 2025. Regulatory bodies pledged enhanced monitoring capabilities to identify illicit trading, emphasizing that digital assets lack legal tender status.
The move comes as global markets continue operating without Chinese participation, with bitcoin trading near all-time highs on offshore exchanges like Binance and Coinbase. 'When elephants fight, the grass suffers,' remarked one Hong Kong-based trader, referencing the growing divergence between China's closed system and global crypto adoption.
