China Vows Tougher Measures Against Stablecoins in 2025

• China reinforces its long-term crypto ban, citing stablecoins as global financial threats.
• PBoC warns dollar-pegged stablecoins weaken smaller nations’ monetary sovereignty worldwide.
• The central bank intensifies coordination with law enforcement to curb crypto speculation.

The People’s Bank of China (PBoC) once again solidified its stance against cryptocurrencies in the 2025 Financial Street Forum in Beijing. According to Governor Pan Gongsheng, stablecoins are a direct menace to international financial stability. He reaffirmed that the central bank will further integrate with law enforcement to stop the virtual currency activities and speculations. According to Pan, the previous policies of China are still alive since this nation attempts to keep financial order and advance the digital yuan.

Central Bank Warns of Global Stablecoin Threat

Pan identified stablecoins as a risk that was growing in the international markets. He cautioned that the U.S.-dollar-pegged fiat tokens would jeopardize the monetary sovereignty of smaller economies. According to him, stablecoins have made the global financial system weak in its structures. He stated that these assets tend to create a speculative indulgence and circumvent financial protection procedures.

Pan further noted that a majority of stablecoins issuers do not meet the major requirements of regulations. He cited that most of them do not have the right customer identification and anti-money laundering (AML) frameworks. It is due to these weaknesses, he claimed, that illegal transfers of funds, terrorist money laundering, and other financial offenses occur. The governor highlighted that stablecoins continue to be financial operations that are subject to supervision requirements by the established law.

Crackdown to Continue Under Strict Oversight

Pan once again confirmed the zero tolerance that China has toward private digital currencies. Since 2017, the PBoC has been collaborating with other agencies to impose a full ban on the value of cryptocurrency trading, mining, and exchange activities. Pan indicated that such efforts had been effective in reducing financial risks and protecting consumer interests.

In addition, he affirmed that the central bank will remain highly observant and will continue evaluating the progress of stablecoins in global markets. According to him, the PBoC is closely monitoring any trend that could disrupt China’s financial system. The bank is still encouraging the use of the digital yuan (e-CNY) as a secure, manageable, and regulated alternative, although discouraging personal crypto use.