Beijing Business Daily: People's Bank of China Defines Stablecoin for the First Time, Industry Analysis Suggests No Impact on Hong Kong Stablecoin Development

BlockBeats News, November 30th. Today, Beijing Business Daily reported in an article titled "Speculation on the Rise, People's Bank of China Once Again Cracks Down on Virtual Currency and Defines Stablecoin for the First Time." The article pointed out that the People's Bank of China recently held a coordination meeting of the mechanism for cracking down on speculation in virtual currency transactions. During the meeting, financial regulatory authorities defined stablecoins for the first time, clarifying that stablecoins are a form of virtual currency that currently cannot effectively meet requirements such as customer identification and anti-money laundering. There is a risk of being used for money laundering, illegal fundraising, illegal cross-border fund transfers, and other illegal activities. It once again emphasized the need to continue cracking down on illegal financial activities related to virtual currency.

However, industry insiders believe that this meeting will not affect the development of stablecoins in Hong Kong, but speculation on stablecoins in mainland China will be strictly suppressed. For domestic entities that plan to develop stablecoins in Hong Kong in the future, their room for maneuver will be greatly restricted, focusing more on practical applications such as cross-border payments and supply chain finance.