China Advocates for Global Stablecoin Regulation Framework

Chinese authorities are pushing for international coordination on stablecoin oversight, citing fragmented domestic regulations as inadequate for rapidly growing adoption. A government-endorsed article in Study Times, authored by Fudan University's Han Weili, highlights transparency gaps, cross-border compliance challenges, and user protection risks.

The proposal emphasizes third-party audits, real-time reserve verification, and embedding compliance directly into stablecoin code. Three stablecoin models—fiat-collateralized, on-chain-collateralized, and algorithmic—require distinct regulatory approaches due to varying technical and legal vulnerabilities.

China signals willingness to contribute to global governance frameworks beyond its existing licensing system. "Trust hinges on peg mechanisms, verifiable reserves, and enforceable rules," Han notes, underscoring the need for a unified regulatory network as stablecoins evolve into mainstream financial tools.