BasEx News | Chinese Authorities Caution Against USDT Use
Chinese Authorities Warn Against Using USDT
04.01.2023
Chinese Authorities Warn Against Using USDT

On December 27, the Supreme People's Procuratorate of China issued a notice, declaring the use of the stablecoin USDT by Tether in cross-border currency transactions as illegal.

"An entity uses virtual currency as a means to profit from exchange rate differences by providing cross-border exchange and payment services. It uses the unique properties of virtual currency to bypass national currency supervision and carry out the conversion of foreign currency and yuan through the exchange 'foreign currency - virtual currency - yuan'", the notice stated.

The department mentioned several cases in which USDT was used in "illegal business operations" and called for local branches to enforce stricter measures against the use of the stablecoin.

At the end of 2022, Chinese police arrested 63 people in a large-scale operation for laundering 12 billion yuan using USDT. Prior to this, the Chaoyang District Court (Beijing) ruled that a salary paid in Tether's stablecoin was illegal.

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