Speculation and hype in virtual money have risen, and thirteen departments have joined forces to combat illegal financial activities.

[Speculation and hype in virtual money has risen, thirteen departments join forces to combat illegal financial activities] The People's Bank of China recently held a meeting of the working coordination mechanism to combat virtual currency trading speculation, attended by responsible comrades from the Ministry of Public Security, the Central Internet Information Office, and other thirteen departments. The meeting required continued adherence to the prohibitive policy on virtual currency and ongoing efforts to combat illegal financial activities related to virtual currency. The meeting pointed out that in recent years, various units have resolutely cracked down on virtual currency trading speculation according to the requirements of the 'Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading Speculation' jointly issued by the Central Bank and ten other departments in 2021, achieving significant results in rectifying the chaos of virtual currency. Recently, due to various factors, speculation in virtual currency has risen, and related illegal activities have occurred from time to time, presenting new situations and challenges for risk prevention and control. The meeting emphasized that virtual currency does not have the same legal status as legal tender, does not have legal compensation, and should not and cannot be circulated and used as currency in the market. Activities related to virtual currency are considered illegal financial activities. Stablecoins are a form of virtual currency that currently cannot effectively meet the requirements for customer identification, AML, and other aspects, posing risks of being used for Money Laundering, fundraising fraud, illegal cross-border fund transfers, and other illegal activities. This meeting required all units to make risk prevention and control an enduring theme of financial work, continue to adhere to the prohibitive policy on virtual currency, and persistently combat illegal financial activities related to virtual currency. All units should deepen cooperation and coordination, improve regulatory policies and legal bases, focus on key links such as information flow and capital flow, strengthen information sharing, further enhance monitoring capabilities, severely crack down on illegal activities, protect the property safety of the people, and maintain the stability of the economic and financial order. (Securities Times)