The People's Bank of China (PBoC) has convened a high-level meeting to emphasize the necessity of cracking down on illegal foreign exchange activities utilizing stablecoins. The central bank reaffirmed its unwavering commitment to enforcing the regulatory bans established in 2021. Regulators cited increased money laundering risks and the facilitation of capital flight as primary drivers for this renewed enforcement push. This move highlights a widening policy gap between Mainland China's restrictive stance and Hong Kong's embrace of digital assets. Following these warnings and the PBoC's stern stance, the impact rippled into the equity markets. Stablecoin-related stocks in Hong Kong experienced significant declines, with companies like Yunfeng Financial seeing drops in share value. Investors appear to be reacting to fears of tighter regulation and the potential spillover effects of the Mainland's strict prohibition on businesses operating in related sectors. [Update 1] The article has been updated to include the market reaction in Hong Kong, specifically noting the decline in stablecoin-related stocks such as Yunfeng Financial following the PBoC's announcement.