Chinese authorities are intensifying control over stablecoins by instructing brokerages to cancel upcoming seminars and remove related research.
Official Measures by China
According to sources from Bloomberg, major brokerage firms have been instructed to cancel seminars and remove research related to stablecoins. This move, while not publicly confirmed by financial regulatory bodies, indicates increasing concern among state authorities.
Concerns and Issues
Authorities are particularly worried about the role stablecoins play in underground crypto transactions, which persist despite bans. Chainalysis estimates that OTC trading in China reached approximately $75 billion within the first nine months of 2024.
Contrast with Hong Kong
In stark contrast to mainland policy, Hong Kong is actively encouraging a regulated crypto industry, granting licenses to state-linked firms to operate in this space.
The measures taken by Chinese authorities regarding stablecoins highlight prevalent concerns about their impact on the financial system, while Hong Kong's approach aims to foster sector development.
