Crack down on cryptocurrency speculation, sustained high pressure!
Just yesterday, the central bank, in conjunction with the Ministry of Public Security, the Supreme Court, the Supreme People's Procuratorate, and 10 other departments held a meeting to launch a series of measures against speculation in virtual currency trading.
This crackdown action is characterized by higher collaboration levels and broader scope compared to previous efforts.
The main targets of the crackdown focus on the following areas:
1/ OTC trading: Individuals or coin merchants engaging in deposits and withdrawals through Alipay, WeChat, and bank cards. WeChat Pay has previously utilized big data to freeze a large number of accounts involved in virtual currency trading, and the funding chain has become a key monitoring target.
2/ Stablecoin activities: The meeting once again clearly warned about the illegal cross-border trading and money laundering risks associated with "stablecoins". Transactions using stablecoins will become a focus of the next phase of the crackdown.
3/ Illegal fundraising and fraud: Any fundraising, pyramid selling, or financial fraud activities promising high returns under the guise of virtual currency.
That said, for the vast majority of retail investors, 99% of the legal risks arise at the "deposit and withdrawal" step.
Following this meeting, the crackdown will be further intensified, and deposits and withdrawals must be handled with extreme caution; channels like Hong Kong cards may become a necessity.
