China to intensify crackdown on stablecoins to thwart illegal forex trading

In a bid to intensify the crackdown on crypto, China is calling for strict measures against illegal foreign exchange trading involving USDT.

China is seemingly preparing to double down on its crypto crackdown, with the Supreme People’s Procuratorate (SPP) and State Administration of Foreign Exchange (SAFE) highlighting criminal cases involving the USDT stablecoin in a recent statement, according to a South China Morning Post report.

While there have not been specific changes to cryptocurrency regulations, Chinese regulators have addressed the increasing popularity of stablecoins, which are pegged to a reserve asset such as the U.S. dollar or gold. Regulators note that digital currencies backed by fiat currencies have become a popular intermediary for yuan trading with other currencies, a move that prompted local officials to improve coordination to lawfully address fraudulent foreign exchange activities.

You might also like: China’s central bank lists crypto-assets in financial stability report

The prosecutor’s office particularly highlighted eight “typical cases of illegal foreign exchange crime,” with two involving USDT. In a 2019 case, a crypto trader received over 22 million UAE dirhams in cash from a Chinese gambling syndicate in Dubai, converted the corresponding yuan in China, and resold USDT for a profit of over 2%, according to the report. Another case involved the exchange of more than 220 million yuan worth of foreign currency using USDT between 2018 and 2021.

Although crypto trading and mining are officially banned in China, the industry remains quite popular in the region, as underground traders continue to use cryptocurrencies to exchange fiat currencies, the South China Morning Post says.

According to the Chinese news agency Xinhua, Beijing has cracked over 1,100 cases involving illegal foreign exchange trading, evasion, and fraud, with fines totalling 1.5 billion yuan (about $211 million) since 2021. However, the extent to which these cases involve cryptocurrencies remains unclear.

Read more: Tether freezes $225m USDT tied to DoJ trafficking syndicate investigation
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

Anthropic created a democratic AI chatbot by allowing its principles to be chosen by users.

Image
In a groundbreaking exploration of AI capabilities, Anthropic, an artificial intelligence (AI) company, has tailored a large language model (LLM) to reflect user-defined values. This unique study involved gathering input from 1,000 participants to fine-tune the LLM’s responses based on their collective judgments. Unlike conventional LLMs equipped with predefined guardrails to constrain certain outputs, Anthropic’s approach embraces user agency. Models like Claude from Anthropic and ChatGPT from OpenAI often adhere to preset safety responses, especially regarding sensitive topics. However, critics argue that such interventions might compromise user autonomy, as the definition of acceptability varies and is subjective across cultures and time periods. A potential solution to this complex challenge is empowering users to shape the value alignment of AI models. Anthropic embarked on the “Collective Constitutional AI” experiment in collaboration with Polis and the Collective Intelligence
Read more

Shiba Inu: $1000 Invested in SHIB in 2020 Becomes $9.2 Million

Image
While the ongoing volatile crypto market has decimated portfolios across the board, early backers of meme coin Shiba Inu are still counting their blessings despite the brutal decline. Investors who took a chance on the fledgling token in its first year have managed to hold onto millionaire status even as SHIB currently trades 89% below its peak. Shiba Inu: An Investment of $1000 in SHIB Turns Into $9.2 Million  According to data from Changelly, an investment of $1,000 made in Shiba Inu cryptocurrency in August 2020, near its launch, would now be worth $9.22 million as of February 2024. This represents a return on investment of 922,047.72% over the span of three and a half years. The considerable gains increased the profile of SHIB during 2021 as some early backers of the previously little known cryptocurrency experienced substantial returns. Outcomes of this magnitude are infrequent from single crypto assets over such a short timeframe. Source: Changelly Nearly all
Read more

Belarus wants to ban P2P cryptocurrency transactions

Belarus’ Ministry of Foreign Affairs cited a high crypto crime rate for banning all citizens from exchanging Bitcoin between each other. The Belarusian foreign ministry is working on legal amendments to prohibit peer-to-peer, or P2P, transactions in cryptocurrencies like Bitcoin (BTC). The Ministry of Foreign Affairs (MFA) of the Republic of Belarus on July 2 issued an official announcement on Telegram about new legislation that would ban P2P crypto exchange for individuals. The authority cited a high cybercrime rate in Belarus, stating that local prosecutors have suppressed the activity of 27 citizens providing “illegal crypto exchange services” since the beginning of the year. Their total illegal revenues amounted to nearly 22 million Belarusian rubles ($8.7 million). The foreign ministry argued that crypto P2P services are “in demand among fraudsters who cash out and convert stolen funds and transfer money to organizers or participants in criminal schemes.” In order to eliminate
Read more