TechFlow news, November 30 — Beijing Business Daily reported today that the People's Bank of China recently held a coordination meeting on cracking down on virtual currency trading speculation. At the meeting, financial regulators for the first time defined stablecoins, clarifying that stablecoins are a form of virtual currency. Currently, they cannot effectively meet requirements for customer identification, anti-money laundering, and other aspects, posing risks of being used for illegal activities such as money laundering, fundraising fraud, and unauthorized cross-border fund transfers. The meeting reiterated the need to continuously crack down on illegal financial activities related to virtual currencies. However, industry insiders believe this meeting will not affect Hong Kong's stablecoin development plans, while speculation on stablecoins in mainland China will face severe crackdowns. For domestic entities planning future stablecoin initiatives in Hong Kong, their room for maneuver will be greatly reduced, limited more strictly to practical application scenarios such as cross-border payments and supply chain finance.
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