In July-August 2025, China’s financial authorities reached out to key brokerage firms and research organizations, demanding an immediate halt to the promotion of stablecoins, as well as the cancellation of planned themed events and conferences dedicated to these digital assets.
This is reported by Finway
Concerns About Fraud and Investor Risks
The Chinese authorities have expressed concerns over the potential use of stablecoins for fraudulent schemes within the mainland. Regulators believe that the rapid increase in interest in such assets could lead to a massive influx of investors into risky financial instruments.
“Chinese policymakers are trying to curb excessive hype around specific topics to prevent a mass influx of investors into risky assets.”
For his part, currency strategist at Oversea-Chinese Banking Corp., Christopher Wong, emphasizes that these actions are part of a policy to contain speculative interest that could threaten financial stability.
Official Position and Hong Kong’s Role
Despite a complete ban on cryptocurrency transactions in China, recent statements from officials have raised speculation about a possible easing of policy in this area. In particular, China supports initiatives to develop Hong Kong as a hub for digital assets. In August 2025, new rules for stablecoin issuers came into effect here, indicating a gradual liberalization of the approach to digital currencies in the special administrative region.
The regulators’ actions intensified following a speech by the head of the People’s Bank of China, Pan Gongsheng, in June, where he emphasized that stablecoins could significantly impact the international financial system, especially amid geopolitical tensions and the increasing vulnerability of traditional payment instruments.
It is worth noting that earlier reports indicated that China is testing the use of stablecoins in Hong Kong to reduce the influence of the US dollar on local financial markets.