News - China acts against Tether (USDT)

By Mike Hesp

China acts against Tether (USDT)

Tether (ERC-20) (USDT)
Laws and regulations

Recently, Chinese authorities took strong measures against the use of cryptocurrencies, including Tether (USDT), in currency trading. This comes more than two years after the introduction of a comprehensive ban on crypto exchanges.

China's highest judicial body, the Supreme People's Procuratorate (SPP), recently warned the public against using stablecoin Tether (USDT) as an intermediary in trading the Chinese yuan against other fiat currencies. On December 27, in cooperation with the State Administration of Foreign Exchange (SAFE), they issued a joint declaration issued, urging local officials to implement stricter measures against the use of Tether in cross-border currency transactions.

According to the official statement of both the Supreme People's Procuratorate (SPP) and the State Administration of Foreign Exchange (SAFE), the use of Tether as an intermediary between local and foreign currencies has been declared illegal. Local agencies should strengthen their cooperation to work in line with the law impose stiffer penalties for "fraudulent purchases of foreign currency, illegal transactions of foreign currency and other criminal activities related to foreign currency."

Chinese authorities stress that any activity involving exchanging cryptocurrencies for the yuan is considered illegal, including indirect involvement such as technical support or providing exchange services. They refer to a court case against Zhao Dong, founder of crypto trading firm RenrenBit, who received a seven-year prison sentence and a 2.3 million yuan fine for facilitating crypto and local currency trading.

Although China introduced a ban on cryptocurrencies in 2021, the use of digital currencies such as Tether appears to be continuing in the country. In 2022, the People's Court of Chaoyang District in Beijing ruled that stablecoins such as USDT cannot be used for salary payments. Local reports suggest also that the crypto market in China in October 2022 will still be was one of the strongest in the world, with mainland China as the second-largest hub for Bitcoin mining.

Download the Anycoin App

Finally, a crypto app for everyone!

Check it out