Chinese government to cryptocurrencies and stablecoins after Terra (LUNA) and TerraUSD (UST) collapse signals that it can introduce stricter regulations.
to the Chinese government owned media company Economic Daily, 31 May in his article on UST and LUNA crash explaining the workings of algorithmic stablecoins detailed. the collapse In this article, “” is used for unexpected events that seem unlikely to happen but have a great impact when they occur.black swandescribed with the phrase ”.
Correspondent Li Hualinin the article “My country has been cracking down on virtual currency trading speculations and numerous trading platforms in recent years. This effectively blocked the transmission of risk in China and enabled investors to avoid investment risks as much as possible.” made statements
hualin, that many other countries are trying to regulate stablecoins after the Terra collapse and a researcher at China Everbright Bank. Zhou MaohuaHe included a quote from
Our country will also accelerate the completion of regulatory gaps in the future and introduce regulatory measures to further reduce speculation of virtual currency, illegal financial activities, related illegal and criminal acts towards stablecoin risk, and better protect people’s safety.
China-focused cryptocurrency reporter Colin Wu In a statement, the Chinese government especially Tether (USDT) assets, including ownership, transfer, acquisition and the sale of more to ban tight restrictions and even full bans to bring “very likely” said that.
However, in the article wuContrary to, that China may not stop at its borders and that regulators in other countries should “try to formulate global general rules” to tighten scrutiny on cross-border payments, the state media said that “prevent virtual currencies from becoming a tool for money laundering, fraud and illegal fundraising” he concluded.
2017 banning cryptocurrency exchanges in chinese government, 2021since the middle of Re-hardening its stance on crypto. multiple institutions, warns about the risk of investing in crypto exists and massive pressure on mining activities within the country being implemented.