China’s central bank has restated its hard line on cryptocurrencies, warning that a renewed wave of speculation is testing regulators and vowing tougher action against illegal activities involving stablecoins, according to Reuters.
The People’s Bank of China (PBOC) said a coordinating meeting on virtual-currency oversight held on Friday concluded that crypto trading and related activity had picked up again due to “various factors,” creating new challenges for risk control, the wire service reported, citing a statement from the central bank.
Regulators singled out stablecoins as a particular concern. The central bank said they fall short of requirements on customer identification and anti–money-laundering controls, and warned they can be misused for money laundering, fraud and unauthorized cross-border fund transfers, according to the report.
The PBOC pledged to step up efforts to combat related offences “to maintain economic and financial stability,” signaling that enforcement against crypto-linked activity is likely to intensify rather than ease.
The renewed warning builds on earlier comments from PBOC Governor Pan Gongsheng in October, when he said the central bank would continue to crack down on the operation and speculation of domestic virtual currencies while closely monitoring and reassessing developments in overseas stablecoins, Reuters said.
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