People's Bank of China: "Virtual asset speculation is illegal... stablecoins also highly likely to be misused"

China, which is applying strict regulations to virtual assets (cryptocurrencies), appears to be poised to step up crackdowns on its citizens.

On the 29th (Korean time), according to BlockBeats, the People's Bank of China held a "Virtual Asset Trading and Speculation Crackdown Work Coordination Mechanism" meeting and discussed the recent possibility of increased virtual asset speculation and illegal financial activities.

The meeting particularly emphasized that, as volatility in the virtual asset market has recently increased, speculative activity is intensifying.

The People's Bank of China also reiterated at the meeting that virtual assets do not have the same legal status as fiat currencies and that they cannot be recognized as having the compulsory legal-tender status of fiat currency. It went on to define all business activities related to virtual assets as illegal financial activities.

It also indicated that regulatory intensity on stablecoins (virtual assets pegged to fiat currency) would be increased. The People's Bank of China pointed out, "Stablecoins are a form of virtual asset," and "they fail to meet basic requirements such as customer identification (KYC) and anti-money laundering (AML), and there is a high risk of misuse for money laundering, illegal fundraising, and unlawful movement of funds."