Hong Kong’s stablecoin hub dreams have reportedly taken a hit after the People’s Bank of China (PBOC) singled out the sector for the first time while reaffirming its long-standing position on the crypto industry.

Beijing’s Latest Warning Targets Stablecoins

Legal experts and analysts suggested that Beijing authorities have clouded Hong Kong’s ambitions to become a key regulated hub for stablecoins following the PBOC’s explicit crackdown on the sector last week.

As reported by Bitcoinist, the People’s Bank of China, alongside other top financial regulators, affirmed on Friday that stablecoins do not qualify as legal tender in the mainland, as they fail to meet regulatory requirements and pose a risk of being used for illegal activities.

“Virtual currency-related business activities constitute illegal financial activities. Stablecoins are a form of virtual currency, and currently cannot effectively meet requirements for customer identification and anti-money laundering, posing a risk of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers,” the PBOC stated.

According to the South China Morning Post (SCMP), the recent pronouncement sank previous hopes that Beijing might have softened its stance on cryptocurrencies amid the global regulatory shift toward the sector, led by the United States. Moreover, it could affect Hong Kong’s efforts to become a hub for the stablecoin sector, analysts recently stated.

In a blog post cited by SCMP, Liu Honglin, founder of Shanghai-based Mankun Law Firm, affirmed that “all the ambiguity, speculation and room for wishful thinking surrounding stablecoins over the past few years has vanished as of today.”

Similarly, Brian Tang, founding director of the Law, Innovation, Technology and Entrepreneurship Lab at the University of Hong Kong’s Faculty of Law, told the news media outlet that Beijing’s latest stance means that applicants for Hong Kong’s stablecoin licenses would need to “‘carefully reconsider’ whether the use cases they had submitted to the HKMA ‘touch mainland China issuers and users.’”

Hong Kong Licenses Approval Risks Delay

The statement also adds to the challenges that Hong Kong’s stablecoin push faces, the report noted. Earlier this year, the Hong Kong Monetary Authority (HKMA) enacted the Stablecoins Ordinance, which directs any individual or entity seeking to issue a fiat-referenced stablecoin (FRS) in the jurisdiction, or any Hong Kong Dollar (HKD)-pegged token, to obtain a license from the financial regulator.

Following the rollout, multiple companies have applied for the license, with more than 30 applications filed, according to SCMP, including logistics technology firm Reitar Logtech and the overseas arm of Chinese mainland financial technology giant Ant Group.

E-commerce giant JD.com, through its fintech arm JD Coinlink, started testing HKD-pegged tokens under the regulator’s sandbox program earlier this year. In August, Wang Hua, CFO and Board Secretary of PetroChina, also disclosed that the company is closely monitoring the latest developments regarding the HKMA Stablecoins Ordinance.

It’s worth noting that Hong Kong’s regulatory agency previously affirmed that the first batch of stablecoin issuer licenses would be approved at the start of 2026. However, some industry players told the news media outlet that the PBOC’s recent declarations could delay HKMA’s timeline.

An HKMA spokesperson stated that the regulator is currently reviewing the application and aims to begin with a few permits. Nonetheless, the spokesperson added that even if Hong Kong proceeds with the original schedule, projects involving the yuan or mainland Chinese institutions could be delayed.

“I do not think we will see offshore yuan stablecoin projects [in Hong Kong] within the next one or two years … as that conflicts with the current tone,” he said. Meanwhile, Syed Musheer Ahmed, founder of FinStep Asia, concluded that institutions from the mainland “will have to wait” before issuing stablecoins in the city.

Bitcoin Magazine

Europol, Swiss Police Dismantle ‘Cryptomixer’ in Major Bitcoin Laundering Crackdown

Law enforcement agencies in Switzerland and Germany have shut down Cryptomixer.io, one of Europe’s largest illicit Bitcoin-mixing operations. 

The takedown unfolded between Nov. 24 and 28 in Zurich, with Europol coordinating cross-border support.

Authorities seized three servers, the cryptomixer.io domain, more than EUR 25 million in bitcoin and over 12 terabytes of data. A seizure banner (see below) now replaces the site. Investigators say the disruption will fuel new leads tied to ransomware groups, dark-web marketplaces and cross-border money-laundering schemes.

Cryptomixer launched in 2016. It quickly became a go-to service for cybercriminals who needed to hide their tracks, Europol said. The platform operated on both the clear web and dark web. Its hybrid design attracted users from ransomware crews, underground forums and online drug markets.

Mixers work by pooling user deposits, shuffling them for long, randomised intervals and redistributing them to new addresses. The process breaks the on-chain trail, making it difficult for analysts to trace specific coins. 

Authorities say Cryptomixer moved more than EUR 1.3 billion worth of bitcoin for clients seeking to wash criminal proceeds. The service was frequently used before funds were pushed to exchanges, ATMs or bank accounts.

German federal investigators said the operation generated “billions of euros in revenues,” much of it tied to illegal activity. The Frankfurt Prosecutor General’s Office and the German Federal Criminal Police Office (BKA) worked alongside Zurich city and cantonal police to lead the on-site action. 

Europol and Eurojust had support from The Hague.

Details of the cryptomixer shutdown

On the action day, Europol deployed cybercrime specialists to Zurich for forensic assistance and real-time coordination. The agency said its Joint Cybercrime Action Taskforce played a central role in connecting investigators across borders. 

Europol also noted similarities to its 2023 takedown of ChipMixer, at the time the largest mixer ever dismantled.

Swiss authorities said the volume of data seized—over 12 terabytes—will be crucial for mapping wider criminal networks. Investigators believe it contains transaction logs, operational documentation and communication records that may link multiple cybercrime groups.

Cryptomixing services have long drawn scrutiny for enabling ransomware payouts, drug sales, weapons trafficking and payment-card fraud.

Regulators and agencies across the EU and U.S. have increasingly targeted mixers that advertise anonymity. High-profile precedents include sanctions and criminal charges against Tornado Cash founders in the U.S. and Netherlands.

Germany’s BKA said the findings from Cryptomixer “will contribute to the investigation of further cybercrimes.” Both countries signaled that more actions against crypto-laundering infrastructure may follow as forensic teams dig through the seized servers and blockchain data.

This post Europol, Swiss Police Dismantle ‘Cryptomixer’ in Major Bitcoin Laundering Crackdown first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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