China is preparing tougher enforcement to stop crypto and stablecoin payments. Authorities see rising risks from renewed trading, scams, and cross-border transfers. Beijing is clamping down while the U.S. embraces a pro-crypto regulatory path.
While public trading has been banned for years, the latest warning makes clear that authorities believe crypto use is creeping back into everyday transactions — and they intend to halt it before it spreads further.
Rather than focusing on mining or retail speculation, officials are now zeroing in on payment activity. The concern isn’t price volatility — it’s money movement. Regulators fear that crypto and especially stablecoins are being used to bypass oversight, shift funds across borders, and disguise the identities of those involved. For Beijing, that represents a direct threat to capital controls.
Emergency Meeting to Close “Gaps” in Enforcement
The People’s Bank of China recently gathered courts, cybersecurity regulators, and public-security authorities for what insiders described as a strategy meeting, not a policy debate. The tone was blunt: regardless of market hype, digital tokens are not recognized as currency in China, and using them like money — for investment or settlement — qualifies as illegal financial behavior.
Authorities admitted that the 2021 clampdown reduced speculation dramatically, but they now believe the ecosystem is rebuilding underground. Officials claim scams, fundraising schemes, and unregistered exchanges have picked up again, prompting a push for real-time monitoring of wallet movements and coordinated investigations across departments.
State-Linked Institutions Test Blockchain — but Privately Issued Crypto Is Off-Limits
Despite the tightening rhetoric, the digital-asset discussion inside China isn’t one-dimensional. Certain state-connected enterprises continue to research blockchain-based settlement. PetroChina, for instance, has publicly tested stablecoin-based payments for international deals and is closely watching the rollout of Hong Kong’s regulated pilot systems.
Beijing’s position appears to be this: decentralized, privately issued crypto assets are unwelcome, but state-controlled digital finance is not. Earlier this year, Hong Kong brokerages were quietly told to pause tokenization projects, while reports emerged that policymakers are studying how a yuan-backed stablecoin could compete abroad with U.S. digital-dollar initiatives.
U.S. and China Now Moving in Opposite Directions
While China is shutting doors, the United States is opening them. Under President Donald Trump, Washington has pivoted toward a crypto-friendly regulatory climate with the stated goal of making the country the global capital of digital finance — a stark contrast to Beijing’s containment strategy.
The widening policy divide is likely to shape the next phase of the crypto industry: one superpower building a competitive regulated marketplace, and another working just as aggressively to prevent one from forming within its borders.