Recently, China’s Supreme People’s Procuracy (SPP) and the State Administration of Foreign Exchange (SAFE) issued a public warning, emphasizing that the use of Tether (USDT) as an intermediary tool in transactions between Renminbi and other foreign currencies are not suitable.
According to the announcement, using USDT in exchanges is considered a violation of the law. At the same time, China’s two leading regulatory agencies have also declared that all activities related to cryptocurrency trading with the Yuan are completely illegal. This includes indirect participation, such as technical support or provision of exchange services.
Notice from Chinese regulatory agency
China has imposed a total ban on all cryptocurrency-related activities and banned foreign cryptocurrency exchanges from providing services to users in the country.
Since 2021, China has taken many law enforcement measures against cryptocurrencies. In one specific case in August 2023, a citizen was sentenced to 9 months in prison for purchasing USDT worth 94,988 Yuan (13,067 USD).
Related: China’s Unexpected NFT Move Amid Hong Kong’s Launch of $15 Million Bitcoin Fund
At the end of December 2023, the Chinese Court sentenced China’s “OTC king” – Zhao Dong, founder of RenrenBit, an OTC trading agent, to 7 years in prison and 2.3 million Yuan currency for facilitating exchange transactions between cryptocurrencies and Yuan.
