China Declares All Stablecoins Illegal, Citing Threat to Monetary Sovereignty

China's central bank escalated its crackdown on digital assets by explicitly designating stablecoins as illegal on November 28. The People's Bank of China convened a multi-agency meeting with financial, judicial, and cybersecurity officials to address rising virtual currency activity. Authorities singled out Tether (USDT) and Circle's USDC, stating they lack customer identification and anti-money laundering safeguards required under the country's 2021 cryptocurrency ban.