Central bank holds meeting to crack down on virtual currency trading and speculation, emphasizing stablecoin risks

On November 28th, the People's Bank of China convened a meeting of the working coordination mechanism to combat virtual currency trading and speculation. Relevant officials from the Ministry of Public Security, the Central Cyberspace Administration, the Supreme People's Court, and the Supreme People's Procuratorate attended the meeting.

The meeting pointed out that virtual currency speculation has recently rebounded, and related illegal and criminal activities occur from time to time. The meeting reiterated that virtual currencies do not have legal compensation properties, and specifically pointed out that stablecoins, as a form of virtual currency, cannot effectively meet customer identification and anti-money laundering requirements, and there is a risk of being used for money laundering and illegal cross-border transfer of funds.

All departments will continue to adhere to the "prohibition policy" on virtual currencies, focusing on information flow, capital flow and other aspects, and continue to severely crack down on related illegal financial activities.

[Odaily]