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China Declares Cryptocurrency Activities Financial Crimes and Reinforces Total Ban
Beijing, China — In a sweeping reaffirmation of its long-standing hostility toward private digital currencies, the Chinese government has reinforced a comprehensive ban on cryptocurrency activities — declaring them illegal financial operations and subject to criminal investigation under national law.
The policy, issued on 6 February 2026 by the People’s Bank of China (PBOC) together with eight major government departments, makes clear that virtual currencies such as Bitcoin, Ether, and other crypto tokens do not have legal status as money in the People’s Republic of China. It states that any business activity involving cryptocurrencies — including trading, exchange, issuance and related financial services — constitutes illegal financial activity and is strictly prohibited.
Illegal Financial Activity and Criminal Liability
Under the new directive, virtual currency–related business activities are explicitly classified as illegal and subject to enforcement actions. The notice clarifies that engaging in such activities can trigger investigations for criminal liability under Chinese law. Activities targeted include:
• Trading or exchanging cryptocurrency for fiat currency.
• Operating virtual currency trading platforms.
• Providing services that support or facilitate crypto transactions.
• Issuing tokens or engaging in fundraising via cryptocurrencies.
The central bank and regulators have stressed that private crypto assets “do not have the same legal status as fiat currencies,” such as the renminbi, and therefore cannot be used in commerce or finance within China’s regulated economic system.
Expanded Restrictions: Overseas Issuance and Stablecoins
In addition to domestic bans, Chinese authorities have also tightened controls on overseas cryptocurrency issuance. Domestic entities — and even their controlled offshore affiliates — are forbidden from issuing cryptocurrencies or stablecoins pegged to the yuan without prior approval from regulators. This marks an effort to prevent companies from bypassing domestic bans by operating from abroad.
Stablecoins — digital tokens typically pegged to a fiat currency — have also been placed under scrutiny, with regulators warning that they pose risks of money laundering, fraud, and unauthorized cross-border fund transfers if not subject to strict identity verification and anti-money-laundering standards.
The Rationale Behind China’s Hard Line
Chinese regulators have long argued that cryptocurrencies are a threat to financial stability and economic order. Authorities claim that speculative crypto trading can fuel illegal fundraising schemes, fraud, and other criminal conduct, while also undermining the government’s control of monetary policy.
This stance goes hand-in-hand with China’s development of its own digital yuan (e-CNY) — a state-issued central bank digital currency — which the government promotes as the only legitimate digital currency for national use. Against this backdrop, private cryptocurrencies are portrayed by Beijing as inherently risky and unsuitable for mainstream financial systems.
Ongoing Enforcement and Public Messaging
Officials have called on multiple government agencies to coordinate enforcement efforts, monitor online and financial channels for illicit crypto activity, and educate the public on the potential dangers of engaging in unregulated digital currencies. Law enforcement agencies continue to pursue cases linked to money laundering and fraud tied to cryptocurrencies.
Despite these restrictions, some cryptocurrency mining and trading activity still persists informally or underground, though it remains officially illegal within China’s jurisdiction.
Attached is a news article regarding china banning cryptocurrency saying it’s a financial crime
https://www.bbc.co.uk/news/technology-58678907.amp
Article written and configured by Christopher Stanley
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