The Public Ministry of China recently shared a document in which it highlighted that the country’s use of the largest stablecoin on the cryptocurrency market, Tether (USDT), as an intermediary for exchanging with the Chinese yuan is considered an illegal practice. Furthermore, the authority called for a “severe crackdown” against the aforementioned practice.
The document was published jointly with the State Administration of Foreign Exchange (SAFE). According to the text, foreign exchange promoters and regulators have already been instructed to intensify supervision related to foreign exchange, highlighting USDT.
“Recently, the Supreme People’s Procuratorate and the State Foreign Exchange Administration jointly released typical cases of punishment for foreign exchange-related crimes. This batch of typical cases is a remarkable result of the fact that the procuratorate and the foreign exchange management department comprehensively use administrative law enforcement and criminal justice methods to strengthen the link between executions and severely punish foreign exchange-related crimes ”, he highlighted.
According to the statement, the USDT cryptocurrency is being used to mediate negotiations between yuan and other currencies. Authorities also called on foreign exchange agencies to punish “fraudulent purchases, illegal transactions and other criminal activities related to foreign exchange.”
In the document, aiming to provide greater support for the measure, the agency shared foreign exchange criminal cases in which the Tether stablecoin was involved.
At the time of publication, the price of Tether was quoted at US$1.00, down 0.1% in the last 24 hours.
Tether Implements Proactive Strategies Against Illicit Use
Tether, the company behind the renowned stablecoin Tether, recently stepped up its measures to combat illicit use of its cryptocurrencies in the US. In a series of communications sent to members of influential U.S. Senate and House committees, Tether highlighted its commitment to preventing illicit activities and supporting law enforcement.
In letters sent on November 16 and December 15, Tether responded to concerns raised by US lawmakers, including Senator Cynthia Lummis and Representative French Hill. These had asked the Department of Justice for a detailed assessment of Tether and Binance’s potential involvement in terrorist financing activities. The concern arose after an attack by Hamas against Israel on October 7, with suspicions that cryptocurrencies could have been used to finance these activities.
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