China’s financial and security authorities reactivated their coordination to curb the recent surge in activities linked to digital asset trading, a market banned in the country since 2021, according to a statement from the People’s Bank of China (PBoC) on November 29.
Regulatory push once again strains state control framework as Bitcoin miner hashrate grows that operate from Chinese territory through structures that are difficult to trace, as reported by NoticiasVE.
In this framework, the People’s Bank of China led a meeting with numerous state organizations to review the recent rally in activities linked to trade and speculation with cryptoassets.
As provided, representatives of the Ministry of Public Security, judicial authorities, financial regulatory entities and technological supervision agencies participated. They are all part of the inter-institutional mechanism created to monitor digital operations that the country considers risky.
The meeting was based on the regulations issued in 2021, when China classified the trading of cryptoassets as an «illegal financial activity» and prohibited the operation of exchange platforms, as well as mining.
At that time, the Government sought to avoid the outflow of capital and reduce the use of digital tools that challenged state control about the monetary system.
The PBoC document noted that, despite these measures, various informal operations have resurfaced in recent months. This increase would have motivated a reinforcement of surveillance tasks.
The authorities once again emphasized that Cryptoassets do not have legal tender within China and that they cannot be used as currency. At the same time, they warned that stablecoins also do not comply with user identification standards or anti-money laundering rules.
For authorities, this combination increases risks of fraud, illicit fundraising and unauthorized cross-border movements.
A contradictory context: formal prohibition and increasing mining activity
Despite the ban, China continues to appear in international measurements of Bitcoin-related activity. The computing power provided by miners located in Chinese territory grew again.
Although China banned mining in 2021, different operators would have found methods to continue illegally.
This contrast could be behind why the authorities once again reinforce the regulatory message. Mining activity does not involve direct trading of assets, but it does generate income in Bitcoin that can then circulate through channels that are difficult to monitor.
Official concern focuses on these capital flows and the eventual use of crypto assets to circumvent financial controls.
A framework that China does not plan to make more flexible
The statement from the People’s Bank of China emphasizes that the country will maintain its prohibitive stance, a line imposed by the Chinese leader Xi Jinping himself.
The current regulations are based on a vision where financial stability is a strategic objective and where state control over the issuance, circulation and surveillance of money is central.
In this scheme, cryptoassets represent a risk because they allow operations without intermediaries and with levels of anonymity that reduce supervision capacity.
The new coordination signal confirms that China does not foresee changes in its approach. Meanwhile, the persistence of mining activity and demand for assets like Bitcoin show that economic interest in these technologies continues, even when the regulatory framework seeks to limit it.