TL;DR
- China intensifies its campaign against digital assets after convening thirteen state agencies, signaling renewed pressure on trading and stablecoin activity.
- Despite restrictions, data confirms that the country still holds about 14% of the global Bitcoin hashrate, exposing persistent mining operations.
- Pro-crypto analysts argue that this development reflects Beijing’s push for tighter control even as global blockchain innovation accelerates.
China escalates its crypto crackdown after a rare multi-agency summit that targeted trading behavior and classified stablecoins as a rising financial concern. Even with stricter enforcement, industry observers argue that Beijing’s posture reveals how digital asset adoption continues to expand outside mainland restrictions. Additional commentary from regional analysts suggests that China’s messaging aims to deter speculation while acknowledging the increasing relevance of decentralized markets across Asia.
Renewed Pressure On Crypto And Stablecoins
The People’s Bank of China brought together thirteen government bodies, including judicial and internet regulators, reaffirming that digital assets do not carry legal currency status in the Chinese economy. Any attempt to use them in payment systems is treated as illegal financial activity.
Stablecoins were a central focus. Authorities warned that pegged tokens can enable opaque cross-border flows if they operate without strong identity checks and anti-money-laundering measures. This view aligns with tighter frameworks adopted in Europe and North America following recent market turbulence.
Pro-crypto analysts emphasized that stablecoins remain essential for global liquidity, enabling rapid and cost-effective movement of value for users who rely on decentralized finance to bypass slow or restrictive banking channels.
Mining Activity Survives The Crackdown
Despite intensified pressure, independent data shows that China still accounts for roughly 14% of global Bitcoin hashrate, an indication that underground mining persists across regions with abundant hydro or solar energy.
Although large-scale mining was banned in 2021, several operators relocated major facilities abroad while keeping small, discreet operations inside China. Analysts argue that this highlights the limits of territorial bans on decentralized networks.
Developers in Hong Kong and Singapore noted that China’s restrictive stance contrasts with the rapid expansion of tokenization pilots, digital-asset licensing regimes, and cross-border blockchain infrastructure elsewhere in Asia. These developments further strengthen the migration of innovation toward more open and competitive jurisdictions.
China’s renewed enforcement effort seeks to reinforce monetary authority, yet global blockchain adoption continues to grow. Stablecoins remain crucial for international transfers, and Bitcoin mining activity persists despite prohibitions. The widening gap between domestic restrictions and international progress indicates that the momentum of crypto remains firmly upward, with new hubs in Asia and Europe driving the next phase of development.
