Shenzhen Warns of Stablecoin Scams as Hong Kong Advances Regulatory Framework

Shenzhen authorities have issued a public warning about rising stablecoin-related scams, urging citizens to report fraudulent activities tied to digital assets. The alert highlights illegal fundraising, gambling, and money laundering schemes exploiting public unfamiliarity with stablecoins.

This crackdown contrasts with Hong Kong's progressive stance, where a new stablecoin licensing regime is set to launch August 1. Despite China's crypto trading ban, underground markets continue to thrive, serving as breeding grounds for cross-border scams.

E-commerce giant JD.com recently flagged fake coin promotions on Weibo, underscoring the persistent challenge of crypto fraud in mainland China. The situation reflects the region's paradoxical relationship with digital assets—simultaneously suppressing and being plagued by them.