(Yicai) Dec. 1 -- The People’s Bank of China has called on competent government agencies to continue to adhere to the policy banning virtual currencies and keep cracking down on related illegal financial activities.

Virtual currencies do not have the same status as legal tender, so they should not and cannot be used as currencies, so virtual currency-related business activities are illegal, China’s central bank said at a coordination meeting on fighting cryptocurrency trading and speculation on Nov. 28.

Stablecoins are a form of virtual currency, and they cannot effectively meet requirements, such as customer identity verification and anti-money laundering, meaning that they are at a risk of being used for illegal activities, including money laundering, fundraising fraud, and cross-border illicit transfer of funds, the PBOC noted.

The meeting, held at a time when virtual currency speculation is on the rise, demanded that all competent government agencies deepen collaboration, improve regulatory policies, focus on key links, such as information flow and capital flow, enhance information sharing, further improve monitoring capabilities, and crack down on illegal and criminal activities.

Officials from the Ministry of Public Security, the Office of the Central Cyberspace Affairs Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission attended the meeting.

Editor: Futura Costaglione