According to Chinese government media affected by the Terra (LUNA) and UST stablecoin incident, the government is poised to take stablecoin risk management measures to reduce the space for illegal activities and related crimes. Here are the details…
After LUNA, China will take measures to prevent stablecoin risks
The country has always tightened regulations on cryptocurrencies, despite being the 2nd most important Bitcoin mining country just behind the USA . Despite a series of bans, Bitcoin miners still work. This arrangement sparked a wave of underground Bitcoin mining in China. As Cryptokoin.com previously reported, the collapse of LUNA shook the entire crypto investment community. With a market cap of $41 billion and hundreds of thousands of fans, LUNA has hit rock bottom. The price dropped from almost $90 to almost zero in just a few days.
The country will allegedly accelerate the completion of regulatory gaps and further expand the space for speculation in cryptocurrencies, illegal financial activities and related illegal and criminal activities. It will introduce targeted management measures for stablecoin risks to mitigate. In addition, Zhou Maohua, a macro researcher in the Financial Markets Department of Everbright Bank of China, said, “Due to the differences in virtual currency regulation policies in different countries, we believe it is easy to make cryptocurrencies a conduit for illegal cross-border asset transfers.” So, what are the stablecoins that can be limited to use? Below you can see some of the biggest stablecoins. However, it is worth noting that the stablecoin market is quite large.
China was taking a position against various projects
China has also been concerned about the use of virtual currencies against money laundering, fraud and law enforcement. It wants regulators in different countries to develop standardized global rules and strengthen cross-border surveillance to prevent it from becoming a tool for extracurricular fundraising. Meanwhile, China will end the use of Stepn, a cryptocurrency project, in the country. Tokens supporting popular “move to win” crypto app Stepn have dropped after news that the game will be blocked for users in China. Associated tokens, Green Satoshi Token (GST) and STEPN token (GMT), dropped in double digits immediately after the announcement.
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