The People's Bank of China Convenes Meeting of the Coordination Mechanism for Cracking Down on Virtual Currency Transaction Speculation

BlockBeats News, November 29, the People's Bank of China held a meeting of the coordination mechanism for cracking down on the hype of virtual currency transactions.

The meeting pointed out that in recent years, various units have earnestly implemented the decisions and deployments of the Party Central Committee and the State Council. In accordance with the requirements of the "Notice on Further Preventing and Dealing with the Risks of Hype in Virtual Currency Transactions" jointly issued in 2021 by the People's Bank of China and ten other departments, they resolutely cracked down on the hype of virtual currency transactions, rectified the chaos of virtual currency, and achieved significant results. Recently, influenced by various factors, speculation and hype in virtual currency have resurged, and related illegal and criminal activities have occurred from time to time, posing new situations and challenges to risk prevention and control.

The meeting emphasized that virtual currency does not have the same legal status as legal tender, does not have legal tender capabilities, should not and cannot be used as currency for circulation in the market, and that virtual currency-related business activities constitute illegal financial activities. Stablecoins are a form of virtual currency that currently cannot effectively meet requirements such as customer identification, anti-money laundering, etc., and there are risks of being used for money laundering, fundraising fraud, illegal cross-border fund transfers, and other illegal activities. (People's Bank of China website)