China continues to tighten regulations on cryptocurrencies and stablecoins – PBoC governor warns of global risks

On October 27, 2025, the annual Financial Forum will open in Beijing. The Governor of the People's Bank of China, Mr. Pan Gongsheng, stated that although cryptocurrencies – especially stablecoins – have emerged frequently in recent years, they are still in the early stages of development. International financial organizations and central banks still hold a cautious attitude.

At the recent IMF and World Bank meeting in Washington, stablecoins and the associated financial risks were the most discussed topics. Many opinions suggest that stablecoins currently do not meet the basic requirements for identity verification and anti-money laundering, increasing the risks of money laundering, illegal money transfers, and terrorist financing, while also causing instability in the global financial system. Mr. Pan emphasized that the regulations from 2017 are still in effect and China will continue to monitor and address domestic cryptocurrency activities.