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- GT Airdrop Is Live! 1.92M GT Burned in Q2, Worth Over $39M
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China's Procuratorate Warns Against the Use of Tether (USDT) Across the Country!
China's Supreme People's Procuratorate has issued a warning against the use of the Tether** (USDT) stablecoin for currency exchange. According to the Chinese authorities, it is against the law to use USDT to exchange the local currency for a foreign currency.
China's Supreme People's Procuratorate issued a joint statement with the State Foreign Exchange Administration (SAFE) on Dec. 27. The document also calls for stricter measures against the use of Tether (USDT). The document states that it is illegal to use USDT to convert the yuan into a foreign currency. In addition, the agencies called on local branches to "punish fraudulent foreign exchange purchases, illegal foreign exchange transactions and other illegal and criminal activities related to foreign exchange."
Officials also underlined that indirect participation, such as technical support or clearing services, is also illegal.
Zhao Dong, a Chinese national, has been found to facilitate crypto and local currency trading. Dong is also known as the founder of the crypto trading desk RenrenBit. Dong was fined $322,000 and sentenced to seven years in prison for his actions. The founder of RenrenBit was found guilty of using United Arab Emirates (UAE) dirhams to buy Tether (USDT) and reselling it in mainland China for Chinese yuan.
Another citizen was sentenced to nine months in prison for buying $13,067 worth of Tether (USDT) in August 2023.
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