Following Brother Wu's explanation, when talking about the central government's document this time, from my personal perspective, it is mainly for the three words "stablecoin". The first sentence "Virtual currencies do not have the same legal status as legal tender, do not have legal compensation, and should not and cannot be used as currency in the market" directly characterizes the legal status of cryptocurrencies and legal tender. In fact, we all know that BTC can be held in China, but the transaction is illegal. If the transaction is illegal, how can it be equal to the legal currency? So the beginning of this sentence is that stable currency is the main thing, especially since there are laws in the United States and Hong Kong has legislation, the first thing for Chinese Mainland is to distinguish between overseas and domestic. No matter what kind of overseas, domestic is illegal and cannot be circulated. The second sentence 'Virtual currency related business activities are illegal financial activities' is not very new, it has been around for a long time. Essentially, it is illegal to engage in any business and activities related to cryptocurrency in Chinese Mainland. The business includes development, operation, maintenance, community, etc., while the activities include meetings, forum gatherings, etc. If you want to say that I secretly didn't get known, then it's definitely okay, and even 'the people don't hold officials accountable' is normal. Is it true that if someone says you are engaged in cryptocurrency related activities, you will definitely be punished with an iron fist? That's not necessarily the case. Law enforcement comes at a cost, so many people who are clearly within the country and openly engage in cryptocurrency activities may not be able to get their hands on them. Therefore, "flaunting wealth" and "cutting leeks" within the country are the most dangerous. The third sentence "Stablecoins are a form of virtual currency that currently cannot effectively meet the requirements of customer identification, anti money laundering, and other aspects. There is a risk of being used for illegal activities such as money laundering, fundraising fraud, and illegal cross-border transfer of funds. It directly indicates that stablecoins cannot meet the requirements of KYC and AML. Some friends ask, isn't digital RMB also a stablecoin? That's completely wrong. The difference between digital RMB and stablecoin is too big. Digital RMB is the RMB directly issued by the central bank, which is only issued through different channels and traceable, but opaque. I won't say that much about it. The most important of these are "money laundering, fundraising fraud, and illegal cross-border transfer of funds". Although there are only three, the degree of harm is completely different, corresponding to individual impact, social impact, and national impact. Especially, stablecoins are a parallel US dollar system that bypasses China's foreign exchange controls. Some friends may ask, why? This will not affect China's own foreign exchange reserves. yes. But in essence, it will not affect foreign exchange reserves, but it is equivalent to bypassing foreign exchange controls and building an unregulated "shadow dollar system", directly threatening the sovereignty of the renminbi and cross-border fund monitoring. So from my personal perspective, OTC is currently the most dangerous cryptocurrency related business in China.