China plans to intensify its crackdown on virtual currencies, including stablecoins, which officials say lack legal status and pose financial risks. The central bank raised concerns about money laundering and fraud associated with stablecoins during a recent meeting. Meanwhile, Hong Kong continues to support the crypto industry, contrasting with mainland policies.

Chinese local governments are selling confiscated cryptocurrencies to boost public funds despite an ongoing ban on crypto trading in the mainland. This practice, facilitated by private companies, raises concerns about transparency and potential corruption, as the country continues to navigate its complex relationship with digital assets.