China Orders Brokers to Halt Stablecoin Promotion Amid Risk Concerns

Chinese financial regulators have directed brokerages and research bodies to cease publishing studies or hosting seminars that promote stablecoins. The MOVE aims to curb potential risks from the rapidly growing asset class, with officials reportedly concerned about fraudulent activities involving these tokens on the mainland.

The crackdown contrasts with recent speculation of a softer stance on digital assets, fueled by Hong Kong's pro-stablecoin policies and its push to become a crypto hub. Despite mainland China's blanket ban on crypto transactions, authorities have supported Hong Kong's regulatory efforts, attracting interest from mainland firms.

Over-the-counter crypto trading remains active in China, with volumes reaching $75 billion in the first nine months of 2024. Analysts suggest Beijing is treading carefully, wary of excessive speculation while navigating the evolving digital asset landscape.