China Curbs Stablecoins, Halts Research and Seminars
The post China Curbs Stablecoins, Halts Research and Seminars appeared on BitcoinEthereumNews.com. Chinese authorities told local firms to stop publishing research or holding seminars related to stablecoins, according to a Friday report from Bloomberg. Chinese financial regulators reportedly instructed local brokers and other entities to cancel seminars and halt the promotion of research on stablecoins. Citing people familiar with the matter, Bloomberg said the authorities were concerned that stablecoins could be exploited as a tool for fraudulent activities. Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. in Singapore, said Beijing may be aiming to prevent a speculative surge among retail investors. “There’s still a worry that not everyone knows adequately about crypto and policymakers, being pragmatic, don’t want herd mentality when investors buy into something that they do not know what the risks are” he said. Related: China’s crypto liquidation plans reveal its grand strategy China takes hold of its financial ecosystem The move follows a series of regulatory steps aimed at tightening control over digital assets, including rules requiring the country’s banks to monitor and flag risky trades involving crypto assets. Monitored activities include cross-border gambling, underground banks and illegal cross-border financial activities involving crypto. Still, while China imposes strict rules on its mainland territory, it appears to be leveraging stablecoins where it suits its objectives. Hong Kong is often viewed as China’s regulatory sandbox, and it has recently implemented a new stablecoin issuance framework with a six-month transition period accompanied by special rules. The Hong Kong subsidiary of major bank Standard Chartered will partner with Web3 software company Animoca Brands to develop a Hong Kong-dollar stablecoin through a joint venture announced on Friday. Standard Chartered’s involvement is particularly notable. The bank is one of three entities — alongside HSBC and Bank of China (Hong Kong) — authorized to issue physical Hong Kong dollars under the Hong Kong Monetary Authority’s oversight.…
The post China Curbs Stablecoins, Halts Research and Seminars appeared on BitcoinEthereumNews.com.
Chinese authorities told local firms to stop publishing research or holding seminars related to stablecoins, according to a Friday report from Bloomberg. Chinese financial regulators reportedly instructed local brokers and other entities to cancel seminars and halt the promotion of research on stablecoins. Citing people familiar with the matter, Bloomberg said the authorities were concerned that stablecoins could be exploited as a tool for fraudulent activities. Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. in Singapore, said Beijing may be aiming to prevent a speculative surge among retail investors. “There’s still a worry that not everyone knows adequately about crypto and policymakers, being pragmatic, don’t want herd mentality when investors buy into something that they do not know what the risks are” he said. Related: China’s crypto liquidation plans reveal its grand strategy China takes hold of its financial ecosystem The move follows a series of regulatory steps aimed at tightening control over digital assets, including rules requiring the country’s banks to monitor and flag risky trades involving crypto assets. Monitored activities include cross-border gambling, underground banks and illegal cross-border financial activities involving crypto. Still, while China imposes strict rules on its mainland territory, it appears to be leveraging stablecoins where it suits its objectives. Hong Kong is often viewed as China’s regulatory sandbox, and it has recently implemented a new stablecoin issuance framework with a six-month transition period accompanied by special rules. The Hong Kong subsidiary of major bank Standard Chartered will partner with Web3 software company Animoca Brands to develop a Hong Kong-dollar stablecoin through a joint venture announced on Friday. Standard Chartered’s involvement is particularly notable. The bank is one of three entities — alongside HSBC and Bank of China (Hong Kong) — authorized to issue physical Hong Kong dollars under the Hong Kong Monetary Authority’s oversight.…
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