China Cracks Down on Stablecoin Promotions While Advancing Digital Yuan

Chinese financial regulators have intensified scrutiny of stablecoin-related activities, instructing brokerages and research firms to cancel promotional events and halt publications. The MOVE reflects concerns over potential fraud and speculative risks associated with these dollar-pegged digital assets.

Shenzhen authorities issued explicit warnings in July 2025 about unlicensed entities exploiting stablecoin HYPE for illegal fundraising schemes. Fraudsters have impersonated major corporations like JD.com, prompting official denials and regulatory action.

While suppressing private stablecoins, China continues developing its central bank digital currency. The contradictory approach highlights policymakers' caution about uncontrolled crypto adoption versus their strategic embrace of blockchain-based financial infrastructure.