In July and August 2025, Chinese financial regulators reached out to leading brokerage firms and analytical centers, demanding an end to the promotion of stablecoins and the cancellation of planned seminars on this topic.
This is reported by Business • Media
Concerns About Fraud Schemes
The Chinese authorities expressed concerns that stablecoins could be used for fraudulent operations on the mainland. In this regard, regulators have intensified oversight of activities related to these digital assets.
“China’s financial regulators have asked companies to halt activities and research on stablecoins.”
Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp., believes that the actions of Chinese policymakers are aimed at curbing excessive interest in specific financial instruments to prevent a mass influx of investors into risky assets.
Changes in Digital Asset Policy
Despite the country’s complete ban on cryptocurrency transactions, recent official statements have sparked discussions about a possible partial easing of policy. In particular, the authorities support the development of Hong Kong as a hub for digital assets. In August 2025, new rules for stablecoin issuers came into effect here.
Increased regulatory activity has been observed following remarks by the head of the People’s Bank of China, Pan Gongsheng, in June. He noted that stablecoins could transform international finance, especially considering geopolitical tensions and the vulnerabilities of traditional payment systems.
It was previously reported that China is testing stablecoins in Hong Kong to reduce the influence of the US dollar on local and international markets.