Beijing Business Today: The People's Bank of China has defined stablecoin for the first time, and industry analysis suggests it will not affect Hong Kong's stablecoin-related layout.

PANews, November 30 - According to Beijing Business Today, the People's Bank of China recently held a coordination meeting to combat virtual money trading speculation. During this meeting, financial regulatory authorities defined stablecoin for the first time, clarifying that stablecoin is a form of virtual money. Currently, it fails to effectively meet customer identification, AML, and other requirements, posing risks of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. The authorities reiterated the need to continue cracking down on illegal financial activities related to virtual money. However, industry insiders believe this meeting will not affect the relevant layout of stablecoins in Hong Kong, but speculation on stablecoins in mainland China will be severely cracked down. Moreover, the future layout of stablecoins by relevant entities in the mainland in Hong Kong will have its imaginative space significantly reduced, and will be more limited to practical application scenarios such as cross-border payments and supply chain finance.