Pan Gongsheng: The People's Bank will continue to work with law enforcement agencies to crack down on the operation and speculation of virtual money within the country, maintaining economic and financial order.

[Pan Gongsheng: The People's Bank will continue to crack down on the operation and speculation of domestic virtual money in conjunction with law enforcement agencies to maintain economic and financial order] Pan Gongsheng, the governor of the People's Bank of China, stated at the 2025 Financial Street Forum Annual Meeting today that in recent years, virtual money issued by market institutions, especially stablecoins, has been continuously emerging, but overall it is still in the early stages of development. International financial organizations and financial management departments such as central banks generally adopt a prudent attitude towards the development of stablecoins. Ten days ago, at the IMF/World Bank Annual Meeting held in Washington, stablecoins and the financial risks they may pose became one of the most discussed topics among finance ministers and central bank governors. The prevailing view mainly focuses on the fact that stablecoins, as a form of financial activity, currently cannot effectively meet the basic requirements for customer identification, AML, and other aspects, thereby amplifying loopholes in global financial regulation, such as money laundering, illegal cross-border fund transfers, and terrorist financing. The atmosphere of market speculation is strong, increasing the vulnerability of the global financial system and impacting the monetary sovereignty of some underdeveloped economies. Since 2017, the People's Bank has issued multiple policy documents in conjunction with relevant departments to prevent and deal with the risks of speculation in domestic virtual currency transactions, and these policy documents remain effective. In the next step, the People's Bank will continue to crack down on the operation and speculation of domestic virtual money in conjunction with law enforcement agencies, maintain economic and financial order, and closely track and dynamically assess the development of overseas stablecoins. (Financial Frontline)