As interest in digital assets and stablecoins rises in China, regulatory authorities warn the public of potential scams and illegal financial activities.
Warning from Chinese Authorities
On July 7, 2025, the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities issued a statement expressing concerns about fraudulent groups misusing terms like stablecoins and virtual assets to deceive citizens. Authorities warn that some groups are leveraging the current interest in digital assets to conduct illegal fundraising schemes.
Need for Increased Awareness
The notice states that many of these entities present themselves as financial innovators, issuing so-called digital assets or virtual currencies to lure unsuspecting investors. In reality, they are unlicensed operators engaged in illegal activities. Regulators urge citizens to be vigilant and avoid blindly trusting exaggerated investment promises, and to report suspected scams to local authorities.
Comparison with Other APAC Regions
Other regions like Hong Kong and South Korea have already begun to embrace stablecoins as part of a broader digital asset initiative. Hong Kong is set to introduce a new licensing framework for digital assets, while South Korean regulators are working on creating a legal framework to support Korean won-pegged stablecoins.
Chinese regulators emphasize the need for increased public awareness of investment risks associated with digital assets, especially amid the rising interest in stablecoins.
