FINANCE

China Flags Stablecoin Risks in Renewed Push to Rein in Crypto Activity

Published: Dec. 3, 2025 6:38 p.m. GMT+8

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The People’s Bank of China. Photo: VCG

China has vowed to maintain a sweeping ban on cryptocurrency trading and speculation as regulators warn that such activity has resurfaced despite years of crackdowns, while also highlighting the risks posed by stablecoins.

The People’s Bank of China (PBOC) convened a coordination meeting Friday on combating virtual-currency trading and speculation, bringing together officials from law enforcement, the judiciary and the country’s cyberspace regulator, among others.

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China reaffirmed its comprehensive ban on cryptocurrency trading and speculation, stressing virtual currencies have no legal status.
Regulators highlighted rising risks from stablecoins and recent cases of fraud, such as the DGCX Xinkangjia platform causing $1.8 billion in investor losses.
Authorities pledged tighter monitoring and enforcement, emphasizing their commitment to clamp down on illegal financial activity and ensure financial stability.

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Who’s Who

DGCX Xinkangjia: DGCX Xinkangjia is an investment platform that was involved in a high-profile fraud case in China. It utilized the U.S. dollar stablecoin Tether (USDT) to collect and transfer funds. This scheme resulted in approximately 2 million investors facing losses estimated at 13 billion yuan ($1.8 billion).

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