According to a report by Bloomberg on Friday, Chinese authorities told local companies to stop publishing research or hold seminars related to Stablecoins.
China’s financial regulatory agencies It is said that Instruct local brokers and other entities to cancel the workshop and stop facilitating research on Stablecoins. Bloomberg quoted people familiar with the matter as saying authorities were concerned that stablecoins could be used as tools for fraudulent activities.
Christopher Wong, a currency strategist at a banking firm in Singapore abroad, said Beijing could aim to prevent a speculative surge in retail investors.
“There is still a concern that when investors buy something they don’t know what the risk is, not everyone is fully aware of crypto and policy makers, pragmatic, and not thinking about the herd mentality.”
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China masters its financial ecosystem
The move follows a series of regulatory steps designed to strengthen control over digital assets, including rules requiring the country’s banks to Monitor and mark risk transactions involving crypto assets. Monitored activities include cross-border gambling, underground banks and illegal cross-border financial activities involving cryptocurrencies.
Nevertheless, despite the strict rules imposed by China on its mainland territories, it appears to be taking advantage of Stablecoins that suit its targets. Hong Kong is often seen as a regulatory sandbox for China, which recently implemented New Stablecoin Release Framework and Six-month transition period Accompanied by special rules.
Hong Kong subsidiary of the standard charter of large banks to develop stablecoin in Hong Kong in collaboration with Web3 software company Animoca Brands Through joint venture announced on Friday. Participation in the Standard Charter is particularly noteworthy. The bank is one of three entities of HSBC and Bank of China (Hong Kong), and is authorized to issue the entity Hong Kong under the supervision of Hong Kong monetary authorities.
In addition, in late July, China’s e-commerce behemoth jd.com Registered entities related to potential Stablecoin launches In Hong Kong. According to reports Apply for Stablecoin Issuer License in Singapore and Hong Kong. Jingdong Coinlink Technology, a subsidiary of JD Technology Group, also Announced plan to issue Hong Kong dollar stability In summer 2024.
Related: As new regulations come into effect, Hong Kong Stablecoin Stock Slides, experts see health reset
Yuan Stablecoins allows it, but not in China
There are also examples based on the RMB, but are expected to be used only outside the borders of mainland China.
According to reports in late July, China’s blockchain Conflux announced the third edition of its public network. A new stablecoin is introduced, backed by offshore Chinese Yuan. This message follows the anchor point take over In late February, the ASTANA Financial Services Authority, a regulatory body from Kazakhstan, approved statistical approval of its elemental protein proteins.
Although this stablecoin is based on the fiat currency of mainland China, its purpose is to serve only Chinese entities and countries participating in China’s belt and road initiatives. The Belt and Road Initiative is a global infrastructure and economic strategy in China that aims to connect Asia, Africa and Europe through land and maritime trade routes.
Despite domestic restrictions, China seems to be selectively realizing global expansion of its digital currency influence, just not within its own borders.
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