[Central Bank Holds Meeting to Emphasize Risks of Virtual Currencies and Stablecoins]
On November 28, the People's Bank of China held a coordination mechanism meeting to combat speculation and trading of virtual currencies, with attendees including representatives from the Ministry of Public Security, the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate. The meeting pointed out that speculative activities involving virtual currencies have recently been on the rise, and related illegal and criminal activities have occurred from time to time. It reiterated that virtual currencies do not possess legal tender status. The meeting specifically highlighted that stablecoins, as a form of virtual currency, cannot effectively meet customer identification and anti-money laundering requirements, posing risks of being used for money laundering and illegal cross-border fund transfers. All departments will continue to uphold prohibitive policies on virtual currencies and crack down on related illegal financial activities.