China’s state media economic daily report suggests that the collapse of Terra’s ecosystem could introduce stricter regulations on cryptocurrencies and stablecoin by the Chinese government.
and paper The outlet, released on May 31, details the collapse of TerraUSD (UST) and Luna (LUNA), which explains how stablecoin works in the algorithm.So-called “Black Swan” event To praise the Chinese government’s decision to ban cryptocurrencies.
“My country is cracking down on crypto trading speculation and numerous trading platforms,” said reporter Li Hualin, adding, “This effectively blocks the transmission of this risk in China and reduces investment risk. I avoided it as much as possible. “
Hualin says “many other countries” Trying to regulate stablecoin Following the collapse of Terra, China Everbright Bank researcher Zhou Xinhua quoted to claim further restrictions within China:
“In the future, we will accelerate the elimination of regulatory shortcomings and introduce risk-focused regulatory measures for Stablecoin to speculate on cryptocurrencies, illegal financial activities and related illegal and crime. Further reduce the space for activities and enhance protection People’s safety. “
After banning crypto exchange in 2017, the Chinese government Strengthen your stance on cryptography Again from mid-2021. Multiple agencies warn There was a large crackdown on the risks of investing in cryptocurrencies and the domestic mining industry.
Colin Wu, a cryptocurrency reporter focused on China, has cleared the misconception about the ban by telling Cointelegraph that the law does not allow institutions to provide crypto services. ,”addition:
“Institutions and businesses are completely banned from trading or owning cryptocurrencies in China, but individuals are free to own, buy and sell them, and some local courts legally protect them as virtual property. I even consider it to be. “
At the beginning of May, a court in Shanghai said Bitcoin (BTC) teeth Subject to property rights laws and regulations Its value, rarity, and disposability meet the court’s definition of virtual assets.
Cointelegraph previously emphasized the rise as to how traders first get the cipher. Use of VPN between Chinese traders..Following the last round of restrictions, traders have begun more and more Use an offshore exchange Or a peer-to-peer platform for all activities.
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Mr. Wu said there is “great potential” for the Chinese government to further restrict or completely ban Stablecoin in order to ban the ownership, transfer, purchase and sale of assets. In the case of tethers, “he added.
But China may not stay at its own borders, the Chinese Communist Party-owned outlets have “in the development of global general rules” to tighten the scrutiny of cross-border payments by regulators in other countries. We should try. “
The Beijing administration’s mouthpiece concludes that the move “prevents cryptocurrencies from becoming a tool for money laundering, fraud, and illegal financing.”
