09.08.2025 08:19
Chinese authorities have issued a directive to domestic firms, effectively halting all research and seminars pertaining to stablecoins, according to a recent Bloomberg report. This action, taken by financial regulators, mandates the immediate cancellation of any planned seminars or promotional activities related to stablecoin research within the country.
The government's concern centers on the potential for misuse; officials fear stablecoins could facilitate fraudulent activities, fueling anxieties about their widespread adoption. This apprehension was voiced by Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. in Singapore, who suggested Beijing's aim is to curtail speculative investment driven by a lack of understanding among retail investors. He highlighted the risk of a "herd mentality," where uninformed investors might rush into high-risk assets without fully comprehending the potential consequences.
This latest move is part of a broader regulatory crackdown on digital assets. Previously implemented measures obligate Chinese banks to meticulously monitor and report suspicious cryptocurrency transactions, including those connected to cross-border gambling, underground banking, and illicit cross-border financial activities. This approach, however, presents a complex picture.
Despite the stringent regulations imposed on mainland China, the nation appears to be strategically employing stablecoins where beneficial. Hong Kong, often considered a regulatory testing ground for China, recently introduced a novel stablecoin issuance framework, a six-month transition period with accompanying specific rules. This is underscored by a notable partnership announced on Friday: Standard Chartered’s Hong Kong subsidiary is collaborating with Animoca Brands to develop a Hong Kong-dollar stablecoin via a newly formed joint venture. The involvement of Standard Chartered, one of only three institutions—alongside HSBC and Bank of China (Hong Kong)—authorized by the Hong Kong Monetary Authority to issue physical Hong Kong dollars, adds significant weight to this initiative.
