China upgrades regulation! Urges brokers and think tanks to stop promoting stablecoins to prevent encryption fraud risks.

As the global cryptocurrency regulatory environment becomes increasingly stringent, Chinese financial regulators have recently taken a new round of strict measures regarding stablecoins. According to Bloomberg reports, regulatory authorities have explicitly instructed local brokers and think tanks at the end of July and early August to cease promoting stablecoins through research and public activities, and to cancel related seminars. This move reflects China's high alertness to the fraud risks associated with digital assets and indicates that the authorities still maintain strict control over the development of the crypto industry.

Regulatory authorities fully halt stablecoin promotion

Insiders revealed that Chinese financial regulators have explicitly required brokerages and think tanks to suspend all promotional activities related to stablecoins, including research reports, public forums, and offline events. This move aims to prevent stablecoins from becoming a new wave of speculative frenzy, especially when retail investors have not fully understood the risks. Christopher Wong, a currency strategist at OCBC Bank in Singapore, pointed out that Chinese policymakers do not want to over-promote sensitive topics to avoid a concentrated influx of funds into specific asset classes.

Official attitude shift, regulation leads the path of encryption development

Despite the public statement made by Pan Gongsheng, the Governor of the People's Bank of China, in June regarding a more open attitude towards certain forms of Crypto Assets (especially those linked to the Renminbi), the market speculated that China might relax regulations. However, the latest measures indicate that Beijing still insists on strict control, and any developments related to encryption must be conducted under official guidance. Mainland China still prohibits Crypto Assets trading, but the scale of over-the-counter trading continues to expand, soaring to $75 billion in the first nine months of 2024.

Comparison of New Regulations in Hong Kong, Continuous Tightening of Regulations in Mainland

In stark contrast to Hong Kong's recent active promotion of the regulatory development of stablecoins, mainland China has chosen to further tighten regulations. Hong Kong has issued licenses to 11 crypto assets exchanges and 44 companies, allowing them to provide digital asset trading services for clients, with state-owned enterprises also actively participating. This regulatory divergence highlights China's cautious attitude towards crypto assets and Hong Kong's inclusiveness in financial innovation.

Outlook of the Crypto Industry: Compliance and Risks Coexist

China's suspension of stablecoin promotion means that the government will continue to dominate the development path of the Crypto Assets industry and strictly prevent potential fraud risks. With the expansion of over-the-counter trading and the implementation of new compliance policies in Hong Kong, the future of the Chinese crypto market may present a pattern of coexistence of compliance and innovation. Investors need to closely monitor regulatory trends, evaluate risks rationally, and seize compliance opportunities.

Conclusion

China's financial regulatory authorities have全面升级stablecoin regulation, emphasizing the prevention of fraud and speculative risks, demonstrating the official strict control over the Crypto Assets industry. In the future, as regulatory policies continue to adjust, compliance and innovation will become the core issues for the development of China's Crypto market.