[Key Regulations on Illegal Stablecoin Exchange Activities from the People's Bank of China 1128 Meeting]
On December 1, the People's Bank of China, in collaboration with multiple departments, held the 1128 meeting to reaffirm the provisions of the 2021 'Notice on Further Preventing and Handling Risks of Virtual Currency Trading and Speculation.' The meeting reiterated the prohibition of virtual currency-related business activities and emphasized cracking down on money laundering and illegal capital outflows using virtual currencies.
Lawyer Xiao Sa interpreted the meeting as focusing on regulating illegal exchange activities involving stablecoins, as such practices severely disrupt financial order. In recent years, judicial authorities have intensified their regulation of cryptocurrency traders, involving charges such as illegal business operations and money laundering.
Furthermore, Xiao Sa believes the meeting will not impact Hong Kong's open policy on virtual assets, as Hong Kong and mainland China have established a basic regulatory framework of openness versus restriction.