China's Central Bank Flags Money Laundering and Fraud Concerns With Stablecoins (theblock.co)
(Monday December 01, 2025 @11:41AM (msmash)
from the stable-but-not-welcome dept.)
- Reference: 0180249063
- News link: https://slashdot.org/story/25/12/01/0757232/chinas-central-bank-flags-money-laundering-and-fraud-concerns-with-stablecoins
- Source link: https://www.theblock.co/post/380811/chinas-central-bank-reaffirms-crypto-ban-flags-stablecoin-risks-following-multi-agency-meeting
China's central bank has flagged stablecoins as a specific concern in its latest push against virtual currencies, warning that the tokens [1]fail to meet requirements for customer identification and anti-money-laundering controls and risk being used for fraud, money laundering, and unauthorized cross-border fund transfers.
The People's Bank of China released a statement Saturday following a Friday meeting on virtual currency regulation, saying crypto speculation has recently increased due to various factors and now presents new challenges for risk control. Virtual currencies do not hold the same legal status as fiat currency and cannot be used as legal tender, the bank said, adding that all virtual currency-related business activities are "illegal financial activities."
China banned cryptocurrency trading in 2021. The bank said it will intensify efforts to combat illegal financial activities to maintain economic and financial stability. In October, PBOC Governor Pan Gongsheng said the central bank would closely track and evaluate the development of overseas stablecoins.
[1] https://www.theblock.co/post/380811/chinas-central-bank-reaffirms-crypto-ban-flags-stablecoin-risks-following-multi-agency-meeting
The People's Bank of China released a statement Saturday following a Friday meeting on virtual currency regulation, saying crypto speculation has recently increased due to various factors and now presents new challenges for risk control. Virtual currencies do not hold the same legal status as fiat currency and cannot be used as legal tender, the bank said, adding that all virtual currency-related business activities are "illegal financial activities."
China banned cryptocurrency trading in 2021. The bank said it will intensify efforts to combat illegal financial activities to maintain economic and financial stability. In October, PBOC Governor Pan Gongsheng said the central bank would closely track and evaluate the development of overseas stablecoins.
[1] https://www.theblock.co/post/380811/chinas-central-bank-reaffirms-crypto-ban-flags-stablecoin-risks-following-multi-agency-meeting
It would be a waste! (Score:2)
by supabeast! ( 84658 )
China has put years of work and billions of dollars into getting people to avoid sanctions by conducting international transactions in yuan. They don't want people switching to Tether!
Government objects to competition, film at 11. (Score:2)
> China's central bank has flagged stablecoins as a specific concern in its latest push against virtual currencies, warning that the tokens fail to meet requirements for customer identification and anti-money-laundering controls and risk being used for fraud, money laundering, and unauthorized cross-border fund transfers.
Isn't using it for that -- especially the latter two -- the whole point?
Re: (Score:2)
Of course, it is, which is why they are opposed to it. Only the elite are allowed to corrupt in China.
Re: (Score:2)
> Elsewhere in the free world, even the president's wife has a memecoin.
Speaking of which, lets see how that's going:
[1]https://coinmarketcap.com/curr... [coinmarketcap.com]
[2]"Smithers, why didn't you tell me about this market crash?" [youtube.com]
[1] https://coinmarketcap.com/currencies/melania-meme/
[2] https://www.youtube.com/watch?v=NM8lvKCDNT8