China orders brokers to stop promoting stablescoin in the midst of risky concerns

Chinese financial regulators have asked local brokerage and research houses to stop publishing or accommodate seminars that promote stablecoins, to limit the potential risks of the rapid growth class.

At the end of July and earlier this month, some of the main Chinese brokerage houses and reflection groups received direct regulatory advice to cancel events and stop distributing research on stablecoins.

Officials would have been concerned about the fact that tokens could be used as a fraudulent activity tool on the continent, Bloomberg reported on Friday, citing people familiar with the issue.

The repression of the shield of China follows the speculation of the softer cryptography position

This decision comes despite a speculation renovation on China’s position on digital assets, fueled by recent official comments and the deployment of new legislation by Hong Kong for stablecoin issuers.

While continental China maintains a general ban on transactions related to the crypto, the authorities supported the push of Hong Kong to become a digital asset center, aroused the interest of continental companies.

Analysts say Beijing is walking carefully. “Political decision-makers do not promote too much fanfare in certain subjects just to avoid a rush to the herd towards a class of particular assets,” said Christopher Wong, a strategist of currencies at Oversea-Chinese Banking Corp.

“They don’t want investors to accumulate in something without understanding the risks.”

Despite the ban, free -free crypto trade remains active in China, volumes reaching around $ 75 billion in the first nine months of 2024, according to Chainalysis.

Local governments of Beijing, Suzhou and Zhejiang have recently issued warnings concerning illicit fundraising linked to stablecoins and virtual currencies.

Stablecoins are used more and more for fast and low cost cross -border payments. The global offer is expected to reach 3.7 billions of dollars by 2030.

While the Governor of Banque Populaire de China, Pan Gongsheng, said in June that stablecoins could reshape international finances, regulators are wary of uncontrolled growth, especially in the midst of geopolitical tensions.

Hong Kong evolves in the opposite direction, granting licenses to 11 exchanges of crypto and 44 digital asset negotiation companies, including Chinese entities supported by the State such as CMB International Securities, Guotai Junan Securities (Hong Kong) and TFI Securities and Futures.

Stablescoin regulation is gaining ground

On a global scale, the regulation of Stablescoin accelerates. In the United States, President Donald Trump signed the first Federal Stablecoin bill on July 18, calling it a “giant step” to the guarantee of American domination in global finance and cryptographic technology.

As reproduced, Western Union is positioned for a new digital transformation phase, signaling a strong interest in using stalins to modernize its global operations on funding.

Last month, CEO Devin McGranahan explained how stablecoins could rationalize cross -border transfers, improve the conversion of currencies on the poorly served markets and provide financial tools for populations struggling with unstable local currencies.

Meanwhile, Ripple CEO Brad Garlinghouse said that the Stablescoin sector was ready for explosive growth, projecting the market could ball of its current capitalization of 250 billion dollars up to 2 dollars in the near future.

The Chinese position orders brokers to stop promoting Stablescoin in the middle of risk problems appeared first on cryptonews.

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