$LAB Starting May 1, the government will crack down hard on the illegal resale of USDT and virtual currency transactions, resolutely rectifying financial chaos

From May 1, 2026, the People's Bank of China, in conjunction with the Ministry of Public Security, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will officially launch a special rectification campaign, severely cracking down on off-market resale, exchange speculation, and illegal trading activities of virtual currencies such as USDT (Tether), clearly defining regulatory red lines, and thoroughly cleaning up and rectifying all kinds of illegal financial activities involving virtual currencies, firmly safeguarding the order of the financial market and the safety of the public’s assets.
Regulatory authorities once again reaffirm the clear stance: USDT falls under the category of virtual currencies, does not have the status of legal tender, lacks actual value support, is not legally redeemable, and cannot be used as currency in market circulation. Any individual or organization conducting private resale of USDT, offline matching transactions, currency exchanges, fund collection and payment, or providing intermediary pricing and traffic diversion services for virtual currency transactions within the country are all considered illegal financial activities, and will be banned and strictly investigated according to law.
According to regulatory reports, some criminals are currently exploiting social media platforms and offline private transactions to extensively resell USDT, taking advantage of its strong concealment and cross-border transfer convenience, turning it into an important tool for money laundering, telecom fraud fund transfers, illegal cross-border asset escapes, and online gambling settlements, severely disrupting the country’s foreign exchange management order and damaging financial stability, while also breeding various illegal criminal risks, posing great harm to society.
Public security, financial regulation, cybersecurity, and other departments have launched joint special rectification actions, increasing online and offline investigations, deeply digging into the USDT resale industry chain, and cracking down on illegal activities related to organizing operations, fund routing, and intermediary agencies across the supply chain. For individuals and groups involved in large-scale USDT resale and regular off-market trading, legal responsibility will be pursued for illegal business operations, money laundering, and aiding and abetting crimes; platforms and accounts providing advertising, payment settlement, or technical support for virtual currency transactions will be shut down and banned, with strict accountability enforced.
The regulatory authorities also remind the public to recognize the investment and legal risks of USDT and various virtual currencies, stay away from virtual currency resale and speculation trading, avoid participating in private acceptance and fund payment activities, do not believe in high-yield promises of virtual currencies, protect their own funds, and consciously comply with national financial regulation laws and regulations, jointly resisting illegal virtual currency trading chaos.