Catenaa, Wednesday, July 09, 2025- Authorities in Shenzhen have issued a public warning about fraudulent investment schemes exploiting rising interest in stablecoins and digital assets.
The city’s financial regulators cautioned that scammers are promoting so-called stablecoin-related projects under the guise of “financial innovation” to mislead the public into illegal fundraising, fraud, gambling, pyramid schemes, and money laundering.
The Office of the Special Working Group for Preventing and Combating Illegal Financial Activities said these schemes rely on buzzwords such as “virtual currencies” and “digital assets” to create false legitimacy.
The notice, released Monday, emphasized that the general public’s limited understanding of stablecoins makes them vulnerable to such tactics.
The warning comes amid heightened attention on stablecoins globally. In China, Pan Gongsheng, governor of the central bank, recently acknowledged the role stablecoins and central bank digital currencies are playing in reshaping global payments infrastructure.
Elsewhere, regulation around stablecoins is taking shape. In May, Hong Kong’s Legislative Council passed a bill creating a licensing regime for stablecoin issuers. In June, the U.S. Senate advanced the GENIUS Act, a key piece of stablecoin legislation, to the House for further debate.
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, told Ming Pao that licenses may be issued within the year but will remain limited in number.
Shenzhen’s advisory highlights Beijing’s ongoing zero-tolerance approach to unregulated crypto activity, especially as policy divergence grows with neighboring Hong Kong.
