China crypto roundup – 2 December 2025: PBoC warns of stablecoin risks as Beijing steps up nationwide crackdown

China tightened its stance on cryptocurrencies once again this week, with top financial regulators issuing fresh warnings against trading, mining and the use of stablecoins. The renewed pressure has triggered sharp market reactions across Asia while also revealing the continued persistence of underground crypto activity within the mainland.

PBoC issues fresh warning, labels stablecoins a high-risk threat

China’s central bank reaffirmed that all crypto-related activities remain illegal in the country, warning that stablecoins pose significant risks tied to illicit payments, money laundering and financial instability. Officials reiterated that the state will not tolerate speculative trading or cross-border crypto flows, calling for strict enforcement across financial institutions.

The announcement marks China’s strongest communication on crypto in recent months, signalling a renewed push to eliminate private digital-asset use as the government prioritises control over capital movement and financial discipline.

Crypto markets slump as Hong Kong-linked firms feel the impact

The latest crackdown reverberated through global markets, with leading cryptocurrencies slipping in early trading following Beijing’s remarks. Some Hong Kong-listed firms associated with digital-asset and stablecoin ventures also declined sharply, reflecting investor anxiety over spillover effects from the mainland’s policy tightening.

Market analysts noted that China’s stance continues to influence broader Asian sentiment, particularly in sectors tied indirectly to crypto infrastructure and financial services.

Bitcoin mining resurfaces as underground activity expands

Despite the nationwide ban, China has re-emerged as a major contributor to global Bitcoin mining. Recent industry data suggests that miners have quietly resumed operations in regions with surplus electricity, helping the country regain a notable share of global hashrate.

The resurgence indicates that profit incentives remain strong, and enforcement against decentralised mining activity continues to vary across provinces. Demand for mining hardware in the domestic black market has also been rising, underscoring a disconnect between regulatory intentions and on-ground activity.

Authorities vow coordinated enforcement across agencies

Multiple government bodies — including the central bank, public security agencies, cyberspace regulators and judicial authorities — held a joint meeting last week to strengthen cross-agency coordination. The meeting emphasised strict monitoring, tighter anti-money-laundering controls and immediate action against any platform or individual involved in crypto-related transactions.

Officials stressed that private cryptocurrencies undermine financial stability, and reiterated support for the state-backed digital yuan as the only legitimate form of digital currency in China.

China’s latest actions reinforce its hardline position on private digital assets, even as underground activity proves resilient. The renewed crackdown has shaken sentiment across regional markets once again, signalling that the regulatory environment in the world’s second-largest economy remains firmly opposed to decentralised crypto activities.