CDS Crypto News China Urges Stringent Measures Against Tether Stablecoin in Unlawful Forex Activities
Crypto News

China Urges Stringent Measures Against Tether Stablecoin in Unlawful Forex Activities

China's highest legal prosecution authority, the Supreme People’s Procuratorate, has issued a clear warning, stating that the use of Tether (USDT) for exchanging local and foreign currencies is against the law.

346
China Urges Stringent Measures Against Tether Stablecoin In Unlawful Forex Activities

Crypto News- Chinese authorities are escalating their efforts to tighten control over cryptocurrency usage, especially Tether (USDT), in foreign exchange trading, more than two years after implementing a sweeping ban on crypto activities. The Supreme People’s Procuratorate (SPP), China’s highest national agency for legal prosecution, collaborated with the State Administration of Foreign Exchange (SAFE) to issue a joint statement on December 27, advising the public against utilizing USDT as an intermediary for trading Chinese yuan with other fiat currencies.

China Urges Stringent Measures Against Tether Stablecoin in Unlawful Forex Activities

The SPP and SAFE categorically labeled the use of Tether in cross-border foreign exchange transactions as illegal, urging local officials to enforce more stringent measures. They underscored that any involvement in cryptocurrency exchange against the yuan, including indirect participation such as providing technical support or exchange services, is prohibited by law.

The joint statement highlighted a criminal case involving Zhao Dong, a Chinese citizen and the founder of the crypto trading desk RenrenBit, who played a role in facilitating crypto and local currency trading. Zhao Dong received a seven-year jail sentence and a fine of 2.3 million yuan ($322,000) for purchasing USDT with United Arab Emirates dirhams and subsequently reselling it in mainland China for yuan.

This recent action by Chinese authorities transpires more than two years after the initial ban on cryptocurrency activities in 2021, encompassing trading and mining. Despite these regulatory measures, reports suggest that cryptocurrencies like Tether maintained popularity in China. In 2022, the Chaoyang District People’s Court in Beijing prohibited the use of stablecoins, including USDT, for salary payments after a company unlawfully compensated an employee with USDT.

Enforcement activities against Tether transactions persist, exemplified by a citizen receiving a nine-month sentence for acquiring 94,988 Chinese yuan ($13,067) worth of Tether in August 2023. Despite the regulatory crackdowns, China’s crypto market demonstrated resilience, with the country reemerging as the second-largest Bitcoin mining hub as of October 2022, as indicated by local reports.

China Urges Stringent Measures Against Tether Stablecoin In Unlawful Forex Activities
Written by
Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

Leave a comment

Leave a Reply

Related Articles

JetAI Shares Soar After the Company Aviation Assets to flyExclusive

For more comprehensive information about JetAI shares soars, please visit CDS.

Vitalik Buterin Warns of Moral Shift in Crypto: Is Ethereum at Risk?

For more comprehensive information on Buterin warns of moral shift in crypto,...

Pi Coin Investors Beware! Key Challenges That Could Affect the Pi Network Open Mainnet Launch

For more comprehensive information about the Pi Network Open Mainnet launch, please...

Montana Approves Bitcoin Reserve Bill: But Not Without Political Divide!

For more comprehensive information on Montana approves Bitcoin reserve bill, please visit...