The central bank and other departments have for the first time publicly set the tone, reaffirming their continued adherence to the ban on virtual currencies.

Source: Shanghai Securities News 作者: Chang Peiqi

Recently, the People’s Bank of China held a meeting of the interagency coordination mechanism for combating the trading and speculative hype of virtual currencies.

The meeting noted that in recent years, various units have conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council, and, in accordance with the requirements of the notice titled “Notice on Further Preventing and Disposing of Risks Related to Virtual Currency Trading and Speculative Hype,” jointly issued by the People’s Bank of China and ten other departments in 2021, have firmly cracked down on virtual currency trading and speculative hype, rectified disorderly practices in the virtual currency space, and achieved clear results. Recently, affected by multiple factors, speculation and hype involving virtual currencies has picked up, related illegal and criminal activities have occurred from time to time, and risk prevention and control face new situations and new challenges.

The meeting emphasized that virtual currencies do not have the same legal status as fiat currencies and do not have legal tender status. They should not and cannot be used for circulation as currency in the market. Business activities related to virtual currencies fall under illegal financial activities.

It is understood that this is the first time the central bank has publicly defined stablecoins. The meeting stated that stablecoins are a form of virtual currency. At present, they cannot effectively meet requirements in areas such as customer identity verification and anti–money laundering, and there are risks of being used for illegal activities such as money laundering, fundraising fraud, and the improper cross-border transfer of funds.

The meeting called for treating risk prevention and control as an enduring theme of financial work, continuing to uphold the prohibition policy on virtual currencies, and continuously cracking down on illegal financial activities related to virtual currencies. Each unit should deepen coordinated cooperation, improve regulatory policies and legal bases, focus on key areas such as information flows and capital flows, strengthen information sharing, further enhance monitoring capabilities, severely crack down on illegal and criminal activities, protect the property safety of the people, and maintain stable economic and financial order.

It is understood that responsible officials from the Ministry of Public Security, the Cyberspace Administration of China, the Central Financial Affairs Commission, the Supreme People’s Court, the Supreme People’s Procuratorate, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Justice, the People’s Bank of China, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange attended the meeting.

(Editor: Wenjing)

Keywords:

                                                            Stablecoins