The Governor of the People's Bank of China, Pan Gongsheng, emphasized the cautious stance of international financial organizations and central banks towards stablecoins, which remain in early development stages. Speaking on October 27, Pan noted that stablecoins have been a major topic of concern due to their inability to meet basic requirements like customer identification and anti-money laundering, thus exposing global financial systems to risks such as money laundering and illegal cross-border fund transfers.
Pan reiterated that since 2017, the People's Bank of China has issued several policies to mitigate risks associated with domestic virtual currency trading and speculation, which remain in effect. He affirmed that the PBOC will continue to collaborate with law enforcement to combat domestic virtual currency activities and closely monitor the development of stablecoins internationally.
PBOC Governor Highlights Risks of Stablecoins and Vows Continued Crackdown
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