Virtual Assets Hold No Legal Tender Status

Officials emphasized that none of the existing virtual assets possess the legal attributes of currency and are strictly prohibited from being used as a medium of exchange within the country. According to the PBOC, all activities involving crypto assets fall under the category of illegal financial conduct. Stablecoins were explicitly included in this assessment, described as another form of virtual currency that currently fails to meet essential compliance standards such as customer verification, anti–money laundering measures, and broader financial security requirements.

Regulatory Concerns: KYC, AML and Cross-Border Risks

Chinese regulators highlighted the main risk areas associated with digital assets. Authorities warned that cryptocurrencies continue to be used for:

• Money laundering

• Fraudulent fundraising

• Illicit cross-border capital transfers

These concerns have prompted officials to reiterate that any commercial or financial activity connected to virtual assets remains outside the country’s legal framework.

Rising Speculation and Emerging Challenges

The meeting also noted a renewed increase in speculative trading linked to digital assets, accompanied by sporadic occurrences of illegal or criminal behavior. While the sweeping regulatory measures introduced in 2021 succeeded in bringing the market under tighter control, new market dynamics and evolving threats now require additional layers of supervision. Regulators acknowledged that financial risk management has become more complex and demands continuous monitoring.

China Maintains a Closed Door to Digital Assets

The latest statements clearly indicate that China is not considering any relaxation of its policies toward cryptocurrencies. The central bank maintains that integrating digital assets into the formal financial system is neither feasible nor compatible with national financial security.

These developments reinforce China’s long-standing restrictive approach to the crypto ecosystem, signaling that virtual assets will remain excluded from the country’s regulated financial architecture for the foreseeable future.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’ t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news.

The post China PBOC Reaffirms: “Crypto Assets Are Not Legal Currency” appeared first on Coin Engineer.

Trump’s Crypto Ties Under Scrutiny

Following his election victory in November, Donald Trump accelerated his efforts in the crypto space. Just days before officially taking office, he introduced a memecoin bearing his own name — TRUMP — which immediately triggered ethical and political discussions.

In addition to Trump himself, his family’s involvement in crypto-related projects has drawn criticism from opponents. Representative Khanna accused the Trump family of potential conflicts of interest through their involvement in the World Liberty Financial (WLFI) crypto project, which has been at the center of growing scrutiny.

A Potential Ban on Politicians Trading Crypto

Speaking on MSNBC, Khanna stated, “No president, family member, or member of Congress should be allowed to trade or hold cryptocurrencies.” The proposed legislation reportedly aims to prohibit elected officials from owning, trading, or launching crypto tokens while in office.

Khanna further justified the proposal by referencing Trump, saying, “A sitting president accumulating such vast personal wealth is unprecedented in U.S. history.” The lawmaker emphasized that public service should remain free from personal financial conflicts — particularly in an industry as volatile and unregulated as crypto.

Trump’s CZ’s Pardon Sparks Controversy

Khanna’s criticism didn’t stop with Trump. He also condemned the recent pardon of Binance founder Changpeng Zhao (CZ), calling it “a clear act of corruption.” According to Khanna, CZ allegedly avoided harsher penalties thanks to financial backing tied to the WLFI project.

He went on to say, “We’re talking about a foreign billionaire who was involved in money laundering, funneled funds to terrorist organizations, and then sought a pardon from Donald Trump.” The statement intensified ongoing discussions around political influence and crypto lobbying.

A New Battle in Washington

Although Khanna has not yet revealed the full details of the bill, he emphasized that its purpose is to prevent elected officials from owning crypto assets or receiving foreign funds.

The proposal has already generated significant buzz in both political and crypto circles. If passed, the legislation could mark the first time in U.S. history that a sitting president and their family face an explicit ban on cryptocurrency trading — potentially setting a new precedent for political ethics in the digital asset era.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is Trump Crypto Involvement Facing a Ban? New Bill! appeared first on Coin Engineer.

A Response to Rising Interest

The decision comes amid a rapid increase in domestic investor interest in stablecoins. While authorities acknowledge that the dollar-pegged structure of these digital assets can facilitate cross-border payments, they also warn of associated risks such as money laundering and illegal fundraising. Interest has surged notably since Hong Kong passed its stablecoin legislation in May, leading to a spike in information requests from Chinese investors.

From Shenzhen Warning to Nationwide Restriction

Earlier in July, Shenzhen’s local government issued a public warning about scams operating under the guise of stablecoin investments. Similar alerts quickly spread across the country, culminating in the formal restriction now in place.

Hong Kong’s Different Approach

In contrast to Beijing’s strict stance, Hong Kong is moving forward with its own stablecoin issuance framework. Operating under the “One Country, Two Systems” principle, the special administrative region aims to position itself as a global hub for digital assets, attracting international investors to its market.

New Push for the Digital Yuan

Meanwhile, the People’s Bank of China announced the establishment of a new operational center for the digital yuan (e-CNY) in Shanghai. The goal is to expand its cross-border usage and accelerate global circulation through traditional financial channels.

This approach shows a clear divergence between mainland China’s regulatory caution toward private stablecoins and Hong Kong’s ambition to embrace them as part of its financial growth strategy.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post China Moves to Halt Stablecoin Promotions appeared first on Coin Engineer.

Goodbye to Privacy Coins Like Monero and Zcash

Under the upcoming Anti-Money Laundering Regulation (AMLR), banks, financial institutions, and crypto asset service providers (CASPs) will no longer be allowed to maintain anonymous accounts or handle privacy coins. The regulation specifically targets cryptocurrencies such as Monero and Zcash, which are built around privacy.

Article 79 of AMLR explicitly bans anonymous accounts. And it doesn’t just apply to crypto; anonymous bank accounts, payment accounts, digital wallets, and safety deposit boxes are also included under this restriction.

EU’s Regulatory Structure Finalized, Details on Implementation Coming Soon

The EU’s new AML framework consists of AMLR, AMLD, and AMLAR regulations. While the main structure is largely finalized, the implementation specifics are still being developed. These will mostly be shaped by secondary legislation — implementing and delegated acts — coordinated by the European Banking Authority (EBA).

According to Vyara Savova from the European Crypto Initiative, public input is still being gathered during this phase. She emphasized that centralized crypto projects, especially CASPs regulated under MiCA, should already begin adapting their processes in line with this framework.

Stricter Oversight for CASPs: 6-Country Requirement and 2027 Launch

The new regulatory approach will focus on crypto service providers operating in six or more EU member states. These firms will be subject to direct supervision by AMLA, a new authority to be established for combating money laundering.

Initially, 40 crypto firms will be selected — at least one from each EU country. The selection process starts on July 1, 2027. Key criteria for selection include having over 20,000 local users or more than €50 million in transaction volume.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube  and Twitter for the latest news and updates.

The post European Union to Ban Anonymous and Privacy-Focused Crypto Assets! appeared first on Coin Engineer.

The hacker(s), who had not moved the ETH for a long time, sent the ETH to Tornado Cash in batches of 100. Experts believe that the Lazarus Group, which is linked to North Korea, is behind the attack and theft. The fact that the attackers have not responded to any of Poloniex’s reward offers so far further strengthens this possibility.

The Lazarus Group made a name for itself in 2022 with the Ronin Network attack, stealing $600 million worth of cryptocurrency.

The US banned Tornado Cash last year, citing its use in laundering funds from attacks to support North Korea’s nuclear weapons program. A Tornado Cash developer was also arrested in the Netherlands last year for this reason.

The cryptocurrency world argues that applications like Tornado Cash protect privacy, a human right, and should not be banned.

The US recently arrested the developers and founders of Samurai Wallet for similar reasons.

The post Hacker Launders 1100 ETH Through Tornado Cash appeared first on Coin Engineer.