Beijing Business Today: The People's Bank of China defines stablecoins for the first time; industry analysts believe this will not affect Hong Kong's ...

ChainCatcher reports that the Beijing Business Today published an article titled "Speculation and Speculation on the Rise: The People's Bank of China Cracks Down on Virtual Currencies Again and Defines Stablecoins for the First Time." The article points out that at a recent meeting of the coordination mechanism for combating virtual currency trading and speculation, the People's Bank of China defined stablecoins for the first time, clarifying that stablecoins are a form of virtual currency. Currently, stablecoins cannot effectively meet requirements for customer identification and anti-money laundering, and pose a risk of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers. The article reiterates the need to continue cracking down on illegal financial activities related to virtual currencies.

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 severely cracked down on. The potential for mainland entities to develop stablecoins in Hong Kong will be greatly reduced, limiting their applications to practical scenarios such as cross-border payments and supply chain finance.