The People's Bank of China held a meeting to crack down on speculation in virtual currency trading, emphasizing the risks of stablecoins.

The People's Bank of China convened a meeting of its coordination mechanism for combating speculation in virtual currencies on November 28. Officials from the Ministry of Public Security, the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate attended the meeting. The meeting noted a recent resurgence of speculation in virtual currencies, with related illegal and criminal activities occurring frequently. The meeting reiterated that virtual currencies lack legal tender status and specifically pointed out that stablecoins, as a form of virtual currency, currently cannot effectively meet customer identification and anti-money laundering requirements, posing risks such as being used for money laundering and illegal cross-border fund transfers. All departments will continue to adhere to the "prohibitory policy" towards virtual currencies, focusing on information and capital flows, and will continue to severely crack down on related illegal financial activities.