China's Central Bank Flags Money Laundering and Fraud Concerns With Stablecoins

China's central bank has flagged stablecoins as a specific concern in its latest push against virtual currencies, warning that the tokens fail to meet requirements for customer identification and anti-money-laundering controls and risk being used for fraud, money laundering, and unauthorized cross-border fund transfers.

The People's Bank of China released a statement Saturday following a Friday meeting on virtual currency regulation, saying crypto speculation has recently increased due to various factors and now presents new challenges for risk control. Virtual currencies do not hold the same legal status as fiat currency and cannot be used as legal tender, the bank said, adding that all virtual currency-related business activities are "illegal financial activities."

China banned cryptocurrency trading in 2021. The bank said it will intensify efforts to combat illegal financial activities to maintain economic and financial stability. In October, PBOC Governor Pan Gongsheng said the central bank would closely track and evaluate the development of overseas stablecoins.

Government objects to competition, film at 11.

[russotto]

China's central bank has flagged stablecoins as a specific concern in its latest push against virtual currencies, warning that the tokens fail to meet requirements for customer identification and anti-money-laundering controls and risk being used for fraud, money laundering, and unauthorized cross-border fund transfers.

Isn't using it for that -- especially the latter two -- the whole point?

Re:

[Retired Chemist]

Of course, it is, which is why they are opposed to it. Only the elite are allowed to corrupt in China.

Re:

[jacks smirking reven]

Elsewhere in the free world, even the president's wife has a memecoin.

Speaking of which, lets see how that's going:

https://coinmarketcap.com/curr... [coinmarketcap.com]

"Smithers, why didn't you tell me about this market crash?" [youtube.com]

Re:

[kaatochacha]

All crypto is down hard, memecoin or not memecoin. Take that as you will.

Re:

[jacks smirking reven]

Going from $8.48 to $0.11 is like a drop of 7700%

I'll take that as "all Trump's crypto are rugpull scams designed to get money from his supporters and enrich themselves" but we knew that already

Re:

[jacks smirking reven]

Sure ya got me, whatever 11 is a percentage of 84855 is, whip out your T83 and correct me, i know it's a lot

Re:

[Admiral Krunch]

Percentages do not work the way you think they work.

They do now, ever since Trump lowered drug prices 1200%

Re:

[newbie_fantod]

Only the elite are allowed to corrupt in China.
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Uh huh, let's see how Trumps personal crypto coin is doing today
https://coinmarketcap.com/curr... [coinmarketcap.com]

Re:

[gweihir]

From my understanding, yes. Crime support is the only thing that made crapto viable.

It would be a waste!

[supabeast!]

China has put years of work and billions of dollars into getting people to avoid sanctions by conducting international transactions in yuan. They don't want people switching to Tether!

I'm also thinking they might believe the music

[stabiesoft]

died. Micro-strategy I just read is now saying they may have to sell some btc to pay dividends and interest. If that stock isn't a pyramid scheme, I don't know what is. They sell common shares to buy btc to inflate btc price. Problem is that means more dividends to be paid, and the dilution of their current btc holdings from selling shares. I think China is smart enough to know when this sucker crashes, its going to be monumental. And they'd rather not have their citizens holding the bag.