Beijing Business Daily: The People's Bank of China Defines Stablecoin for the First Time, Industry Analysis States It Will Not Affect Hong Kong's Stablecoin Development Plans

BlockBeats News, November 30th, Beijing Business Daily reported today 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," pointing out that: The People's Bank of China recently held a coordination meeting of the working mechanism to crack down on speculation in virtual currency transactions. The financial regulatory authorities have 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, and carry risks of being used for money laundering, illegal fundraising, illicit 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 relevant layout of stablecoins in Hong Kong, but speculation on stablecoins in the mainland will be severely cracked down upon. As for domestic entities that subsequently lay out stablecoins in Hong Kong, their room for imagination will be greatly reduced, with more limitations on practical applications such as cross-border payments and supply chain finance.