China Classifies Stablecoins as Virtual Currency, Not Criminal Contraband

China's central bank has classified stablecoins as virtual currency rather than criminal contraband, targeting operational, intermediary, and settlement activities, according to Zhao Binghao, Director of the Financial Technology Law Research Institute at China University of Political Science and Law, cited by 21st Century Business Herald on December 2. The classification aims to block currency substitution and cross-border arbitrage channels at the source. Domestic stablecoin operations face multidimensional regulatory pressure, with industry consensus pointing to continued contraction of development space.