China’s financial regulators have asked several top brokerages and think tanks to stop holding seminars and publishing research reports on stablecoins. The move is meant to cool rising public interest and avoid a rush into the sector.
Over the past few days, some leading financial institutions were told to cancel stablecoin-related events and stop sharing research. The decision comes amidst growing concern that stablecoins could be misused for fraud or illegal fundraising. Despite China’s ban on crypto trading, over-the-counter (OTC) activity remains strong, with unofficial markets still active across the country.
The People’s Bank of China and the China Securities Regulatory Commission have not responded to requests for comment. Still, the action reflects a cautious stance aimed at avoiding instability linked to rapid investment trends.
Christopher Wong, a Currency Strategist at Oversea-Chinese Banking Corp in Singapore, noted that Chinese policymakers prefer to keep financial discussions calm to avoid herd behaviour. He said the government doesn’t want people investing in things they don’t fully understand.
Stablecoin Growth Prompts Consumer Protection Measures
The latest clampdown comes shortly after Hong Kong introduced a new set of rules for stablecoin issuers. That move led to a surge of interest from mainland Chinese firms, with some market watchers speculating that China might be softening its stance on digital assets. However, the new restrictions suggest the mainland is still approaching the sector carefully.
Stablecoins, which are typically pegged to the U.S. dollar and backed by cash-like assets, have become popular for their speed and low cost in cross-border payments. Global stablecoin supply is expected to grow to $3.7 trillion by 2030, based on industry projections.
In recent weeks, local governments in cities like Beijing, Suzhou, and Zhejiang have also issued public risk alerts linked to crypto and stablecoin scams. These efforts are part of a broader campaign to limit financial risks while keeping public excitement in check.
Also Read: Animoca, Standard Chartered, HKT to Launch New Stablecoin Venture
