China tightens measures to fight illegal currency trading
China tightens measures to fight illegal currency trading
The Supreme People's Procuratorate of China (SPP) has warned its citizens that it is illegal to use Tether (USDT) as a medium of exchange between the yuan and foreign currencies.
In a joint statement, the SPP and the State Administration of Foreign Exchange (SAFE) said that all officials and organizations directly under the central government should take all measures to crack down on illegal and criminal foreign exchange activities in accordance with the law and maintain a healthy order in the foreign exchange market. In particular, procuratorates and foreign exchange departments should tighten controls on the use of Tether stablecoin in cross-border foreign exchange transactions.
The statement said local authorities should improve coordination to "punish fraudulent forex purchases, illegal forex transactions, and other forex-related criminal activities" in accordance with the law.
The Chinese authorities stressed that the new requirements apply to everyone, including those providing technical support or foreign exchange services.
Mainland China banned cryptocurrency activities in the country, including trading and mining, in 2021. Despite this, demand for cryptocurrencies such as Tether remained high, Cointelegraph reported.
In 2022, the Chaoyang District People's Court in Beijing ruled that stablecoins such as USDT cannot be used to pay wages after a company illegally paid an employee using USDT.
Earlier, a mainland Chinese citizen was sentenced to nine months in prison for buying 94,988 yuan worth of Tether.
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