China to Crackdown on Tether
The Chinese government is taking action against the use of cryptocurrencies, particularly Tether, in foreign exchange trading, more than two years after implementing a ban on cryptocurrencies.
On December 27, the Supreme People’s Procuratorate of China (SPP), the country’s highest agency responsible for legal prosecution, warned the public against using Tether (USDT) to trade Chinese yuan with other fiat currencies.
The SPP issued a joint statement with the State Administration of Foreign Exchange (SAFE), urging local officials to tighten regulations on the use of Tether in cross-border foreign exchange transactions.
The statement declared that using Tether as a medium of exchange between local and foreign currencies is against the law, and called for stricter measures to punish any fraudulent or illegal activities related to foreign exchange, including those involving cryptocurrency exchanges.
The Chinese government clarified that any involvement with cryptocurrency exchange, whether directly or indirectly, is illegal, including providing technical support or exchange services.
