PANews reported on November 30th, citing the Beijing Business Daily, that the People's Bank of China recently held a meeting of its coordination mechanism for combating speculation in virtual currencies. At the meeting, financial regulators defined stablecoins for the first time, clarifying that they are a form of virtual currency and currently cannot effectively meet requirements for customer identification and anti-money laundering. They pose a risk of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. The meeting reiterated the continued crackdown on illegal financial activities related to virtual currencies. However, industry insiders believe that this meeting will not affect the development of stablecoins in Hong Kong, but speculation in stablecoins in mainland China will be severely punished. The potential for domestic entities to develop stablecoins in Hong Kong will be significantly reduced, with applications increasingly limited to cross-border payments and supply chain finance.