China Signals Tighter Crackdown on Virtual Currencies Amid Rising Speculation

Mainland China has reaffirmed its strict anti-crypto stance, announcing plans to intensify efforts against speculation in virtual currencies, according to a report by China Daily.

Authorities emphasized that virtual currencies lack legal recognition as fiat money and are not valid for market transactions. All activities related to digital assets are classified as illegal financial operations, officials from the People’s Bank of China (PBOC), Ministry of Public Security, and Central Cyberspace Affairs Commission said during an inter-agency meeting on Friday.

Officials highlighted a recent surge in speculative trading, warning it poses heightened financial risks and challenges.

China has long maintained stringent restrictions on cryptocurrency, targeting both mining operations and speculative trading. Despite this, the country has recently re-emerged as the world’s third-largest hub for bitcoin (BTC) mining.