China’s PBoC Defines Stablecoins, Intensifies Crypto Crackdown

The People’s Bank of China defined stablecoins as a virtual currency with AML risks at a high-level meeting on November 28, 2025, intensifying crypto regulation in mainland China.

This meeting emphasizes China’s continued stringent stance on crypto activities, risking significant impacts on stablecoin development while steering applications towards Hong Kong for cross-border uses.

PBoC Meeting Redefines Stablecoin Regulations and Risks

The meeting emphasized rigorous enforcement of existing bans on speculative trading and highlighted the need for AML compliance. While the development in Hong Kong remains viable, domestic issues heighten scrutiny.

The implications of this meeting could reshape the landscape of stablecoin applications and cross-border financial activities into Hong Kong could remain prevalent. There is a notable shift in regulatory attitudes that emphasize limiting stablecoin usage in mainland China, likely diminishing speculative activities. Industry insiders believe this could dampen local market enthusiasm, although it remains a developing story, necessitating further clarification. No major statements were available from prominent industry leaders or exchanges directly connected to this meeting, suggesting a cautious community response focusing on compliance and adaptation.

“Stablecoins carry significant risks, including potential use for money laundering, fundraising fraud, and illegal cross-border fund transfers.” – People’s Bank of China (PBoC)

Stablecoin Market Faces Uncertainty as Penalties Increase

Did you know? Past Chinese bans on cryptocurrency activities have historically driven market shifts to offshore entities, illustrating a precedence for the current stablecoin scrutiny.

According to CoinMarketCap, Tether USDt’s current price stands at $1.00, with a market cap of $184.65 billion and a 5.92% market dominance. In the past 24 hours, trading volume decreased by 23.72% to $58.60 billion. Despite minimal price movement over three months, USDT maintains its presence in the stablecoin market.

The Coincu research team notes potential financial and regulatory outcomes stemming from the PBoC’s stricter framework. Cross-border payments and supply chain finance applications may persist in Hong Kong, while mainland restrictions could guide future stablecoin regulations elsewhere. For a detailed insight into global hash rate data, you can refer to the Global Hashrate Heatmap Data Overview.