China Reinforces Crypto Ban Amid Speculation Rise

China's central bank and key government agencies convened on November 28 to reinforce the nation's prohibition on cryptocurrency activities, citing a resurgence in speculative trading that threatens financial stability.

The People's Bank of China (PBOC) led the interagency coordination meeting, which included representatives from the Ministry of Public Security, Cyberspace Administration of China, Ministry of Justice, State Financial Regulatory Commission, China Securities Regulatory Commission, and the Supreme People's Court, among others. Officials emphasized that virtual currencies hold no legal tender status and cannot serve as currency in markets. They declared all related business activities, including trading and speculation, to be illegal financial operations under Chinese law.

The discussions highlighted growing concerns over recent increases in cryptocurrency speculation, which authorities said have led to heightened risks of scams, illegal fundraising, and unregulated cross-border fund transfers. Participants reviewed enforcement efforts since the 2021 notice that banned cryptocurrency trading and mining nationwide, noting that while initial measures curbed market...