PBOC Cracks Down on Stablecoins Again as Mainland China Tightens Regulation, Hong Kong Focuses on Cross-Border Payments

Beijing’s financial regulators convened a coordination meeting to strengthen the crackdown on speculative virtual currency trading, signaling renewed enforcement momentum in the sector. The session focused on aligning regulatory actions across authorities handling crypto risk.

During the briefing, authorities for the first time defined stablecoins as a form of virtual currency that currently cannot meet essential customer identification and anti-money laundering standards.

Officials warned that stablecoins pose risks of money laundering, illicit fundraising, cross-border transfers, and other illegal uses, underscoring the imperative to tighten oversight and continue enforcement against illegal crypto activity.

Industry insiders say the move is unlikely to derail stablecoins initiatives in Hong Kong, but speculation in mainland China will be strictly suppressed; domestic entities planning Hong Kong projects will face tighter constraints, focusing on compliant applications such as cross-border payments and supply chain finance.