[Lawyer's Interpretation of the 1128 Regulatory Meeting: Focus on Cracking Down on Illegal Stablecoin Currency Exchange and Money Laundering, Not a Policy Shift] The People's Bank of China recently convened the 'Coordination Meeting on Combating Virtual Currency Trading and Speculation' (referred to as the 1128 meeting) in collaboration with multiple departments, reiterating the policy outlined in the September 24, 2021 notice prohibiting virtual currency-related business activities. Lawyer Xiao Sa's team pointed out that, as is widely known, China has established a relatively strict foreign exchange control system, generally limiting the annual foreign exchange quota per person to no more than $50,000. With the stablecoin market gradually expanding, application scenarios increasing, and the number of coin dealers surging, many outbound capital demands are now being met through stablecoins like USDT and USDC. Furthermore, some individuals have even used stablecoins to facilitate upstream criminal activities such as money laundering or concealing and disguising proceeds from crimes. In judicial practice, there have even been cases of bold foreign trade merchants using USDT and USDC to circumvent United Nations sanctions resolutions and assist sanctioned countries in conducting foreign trade. The focus of this meeting is: 1. To guide judicial rulings back toward stricter enforcement, curbing the trend of courts leniently handling contracts involving cryptocurrencies. 2. To crack down on serious violations such as using stablecoins like USDT and USDC for illegal currency exchange, money laundering, and assisting sanctioned countries in trade. Additionally, Lawyer Xiao Sa believes that this meeting does not signify a policy shift and will not affect Hong Kong's open policy toward virtual assets. Currently, a 'Mainland restriction, Hong Kong openness' framework has been established, with clear regulatory intentions: financial innovation is permissible but must be advanced in designated regions and within compliance frameworks. For domestic practitioners, it is essential to remain vigilant about legal boundaries, operate in compliance, and avoid taking chances.