A meeting of the coordination mechanism for combating cryptocurrency trading and speculation was held on November 28.
Officials from more than ten departments, including the Ministry of Public Security, the Cyberspace Administration of China, the Central Financial Affairs Commission, the Supreme People's Court, and the Supreme People's Procuratorate, participated in the meeting.
In summary:
Stablecoins pose a risk of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. This is the first time regulatory authorities have explicitly warned of the risks of stablecoins at an important meeting, indicating that the scope of regulation covers all forms of virtual currencies. (Note: all.)
Furthermore, the meeting required all units to focus on key aspects such as information flow and capital flow, strengthen information sharing, and further improve monitoring capabilities. All departments will deepen coordination and cooperation, improve regulatory policies and legal basis, and severely crack down on illegal and criminal activities.
The meeting emphasized the need to continue adhering to the prohibitive policy on virtual currencies, continuously crack down on illegal financial activities related to virtual currencies, and make risk prevention and control a perpetual theme of financial work.
In other words, the focus will still be on the circulation of USDT and USDC, especially their exchange with fiat currencies. For individual retail investors, there's an unavoidable issue with OTC transactions: deposits and withdrawals essentially circumvent national foreign exchange controls! Therefore, if you have a problem with this, you need to be extra careful, especially with large transactions.
