#DecemberRateCutForecast

During an interagency meeting, the People's Bank of China (PBOC) confirmed its position on the illegal status of digital assets in the country and outlined the risks associated with the use of stablecoins.
Representatives from the Ministry of Public Security, the Cyberspace Administration, the Central Financial Stability and Development Administration, the Supreme People's Court, and other regulatory authorities participated in the meeting. In the same composition, in 2021, the authorities imposed an effective ban on cryptocurrency trading.
The representatives of the agency also noted that they intend to "toughly curb illegal and criminal activities" in this direction.
The meeting was convened against the backdrop of a "renewal of speculative activity" with digital assets. The report emphasizes that previous bans on crypto trading and mining succeeded in "eliminating chaos in the market."
The central bank has paid special attention to stablecoins. The NBK pointed out their non-compliance with anti-money laundering standards and their particular popularity among fraudsters.
Local authorities seem unwilling to soften their rhetoric regarding digital assets. In August 2025, Chinese agencies demanded that brokerage firms and analytical centers cancel seminars and stop publishing research on "stablecoins."
In addition, in September, the China Banking Regulatory Commission unofficially instructed several local brokers to suspend RWA business in Hong Kong.
Despite the strict regulation, the country's share of the hash rate in Bitcoin mining exceeded 14%. As of early October, the figure was approximately 145 EH/s, having increased by 13.8% over one quarter.
Recall that in January 2024, WSJ reported on methods to bypass the ban on crypto trading in China.