Catenaa, Monday, August 11, 2025-Chinese regulators have ordered local firms to stop publishing research and holding seminars on stablecoins, signaling a crackdown amid concerns over potential fraud and speculative risks.
Authorities instructed brokers and financial entities to cancel stablecoin-related events and halt promotions, aiming to curb retail investor enthusiasm fueled by limited understanding, according to sources cited by Bloomberg.
Currency strategist Christopher Wong noted Beijing’s pragmatic approach to prevent herd mentality and speculative surges in the crypto market.
The move follows ongoing regulatory efforts to tighten control over digital assets, including new rules requiring banks to monitor and flag risky crypto trades involving cross-border gambling, underground banking, and illegal finance activities.
Despite restrictions in mainland China, the country continues to selectively support stablecoin developments abroad. Hong Kong, seen as a regulatory sandbox, recently launched a stablecoin issuance framework with a six-month transition period. Notably, Standard Chartered’s Hong Kong subsidiary plans to partner with Animoca Brands to develop a Hong Kong-dollar stablecoin.
Other Chinese-linked initiatives include JD.com’s entities preparing for stablecoin rollouts in Hong Kong and Ant International’s pursuit of stablecoin licenses in Singapore and Hong Kong. Yuan-backed stablecoins are emerging offshore, serving China’s Belt and Road Initiative countries, while remaining banned domestically.
China’s selective approach aims to extend its digital currency influence globally while maintaining strict domestic control over crypto activities.
