China Reinforces Crypto Ban, Targets Stablecoin Risks Nationwide

China has reaffirmed its nationwide ban on cryptocurrency activities, including stablecoins, as announced by the People’s Bank of China and the State Council in November 2025.

This ban, aiming to promote the digital yuan, affects global markets with Bitcoin mining disruptions and significant capital outflows, highlighting contrasting regulatory approaches with Hong Kong.

China’s government has reaffirmed its nationwide cryptocurrency ban, focusing particularly on stablecoins, as announced by major regulatory bodies overseeing economic stability.

China Intensifies Crackdown on Crypto and Stablecoins

China’s reaffirmed ban targets all crypto activities including trading and mining, reflecting the government’s continued efforts to promote economic stability. This approach aligns with a decade-long campaign led by prominent financial regulatory bodies.

The People’s Bank of China and Financial Stability and Development Committee announced measures to prevent crypto transactions, focusing on stablecoins that threaten financial sovereignty and the digital yuan initiative.

Bitcoin Miners Relocate Amid Ongoing Crackdown

The ban led to a decline in Bitcoin mining operations, forcing miners to relocate to countries like Kazakhstan. The government’s actions are designed to minimize financial risks associated with crypto assets.

China’s crypto policies result in capital shifts offshore, affecting Bitcoin and Ethereum markets and liquidity. Meanwhile, Hong Kong’s evolving regulations attract new investments, marking a stark regulatory contrast.

China’s Regulatory History: From 2013 to 2023

China historically tightened crypto regulations with notable bans in 2013, 2017, and 2021. Each move targeted speculative trading and aimed at controlling potential economic threats posed by unregulated currencies.

Experts indicate that the current reaffirmation may push more capital offshore, leveraging the digital yuan as an alternative. Observers note that such measures likely alter the global crypto landscape.