China Strengthens Oversight on Virtual Currency Amid Rising Speculation
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China's central bank, the People's Bank of China (PBOC), has reaffirmed its strict regulatory stance on virtual currencies, emphasizing continued efforts to curb illegal financial activities linked to cryptocurrency trading.
In a recent coordination meeting on virtual currency speculation, authorities noted a recent uptick in speculative trading and associated illegal activities, highlighting emerging challenges for financial risk management. The PBOC stressed that virtual currencies do not have legal tender status and cannot be used as currency in the market. Consequently, all related business activities are considered illegal financial operations.
Stablecoins were also addressed, with regulators noting that current arrangements fail to adequately meet customer identification and anti-money laundering requirements. This creates potential for misuse in money laundering, fraudulent fundraising, and unauthorized cross-border fund transfers.
The meeting called for strengthened inter-agency coordination, enhanced regulatory frameworks, and improved monitoring of information and capital flows. Authorities emphasized the need for greater information sharing and surveillance to maintain stability in the financial system.
Trade Data Shows Continued Growth
Official data from the State Administration of Foreign Exchange showed that China's international trade in goods and services reached nearly 4.29 trillion yuan (around USD 604.1 billion) in October 2025. Goods exports totaled approximately 2.16 trillion yuan, imports 1.52 trillion yuan, yielding a trade surplus of 641.3 billion yuan. Services trade recorded a deficit of 79.7 billion yuan, with exports at 260.7 billion yuan and imports at 340.4 billion yuan.
Key components of services trade included travel services (175.1 billion yuan), transport services (170.5 billion yuan), and telecommunication, computer, and information services (65.8 billion yuan). In dollar terms, total exports of goods and services amounted to USD 341.6 billion, imports USD 262.5 billion, producing a surplus of USD 79.2 billion.
The PBOC's renewed emphasis on virtual currency oversight occurs alongside robust trade figures, highlighting the authorities' dual focus on managing financial risk while supporting ongoing economic activity.
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