Chinese financial regulators have decided to restrict the activities of leading brokerages and research centers in the stablecoin sector due to rising interest and potential risks related to investments.
Ban on Seminars and Research
In recent days, several leading financial institutions were instructed to cancel events and cease the publication of research on stablecoins. This measure is driven by concerns that stablecoins may be misused for fraud or illegal fundraising.
New Approach to Stablecoins
The new restrictions were introduced following the recent implementation of rules in Hong Kong for stablecoin issuers, which spurred interest from mainland Chinese firms. However, the new measures indicate that mainland China remains cautious regarding this sector.
Forecasts and Consumer Protection Measures
Forecasts suggest that global stablecoin supply is expected to reach $3.7 trillion by 2030. Local governments in cities like Beijing, Suzhou, and Zhejiang have also issued risk warnings related to cryptocurrency fraud. These efforts aim to limit financial risks while keeping public excitement in check.
China's recent actions highlight regulators' cautious approach to the rapidly evolving market of stablecoins and their desire to prevent risks for investors.
