China's central bank, the People's Bank of China (PBOC), stated through its educational and promotional materials that cryptocurrencies do not have the effect of legal tender, and cannot and should not be circulated or used as currency in the market. The PBOC pointed out that engaging in virtual currency-related business activities within the country constitutes illegal financial activity, is strictly prohibited without exception, and will be resolutely cracked down upon and dismantled according to law. Furthermore, overseas institutions and individuals cannot illegally provide virtual currency-related services to mainland Chinese entities in any form. It emphasized that without the legal consent of relevant departments, mainland Chinese entities and overseas entities controlled by them cannot issue virtual currencies overseas. In addition, it stated that without the legal consent of relevant departments, no institution or individual outside mainland China can issue yuan-pegged stablecoins overseas. The PBOC also stressed other points, such as being wary of cryptocurrency investment products and trading platforms, not participating in activities such as cryptocurrency issuance, investment, and mining, and not joining cryptocurrency promotional open chat rooms or communities, or downloading related apps.
