Is China backing out of its stablecoin push? Regulators reportedly move to cool market frenzy
The post Is China backing out of its stablecoin push? Regulators reportedly move to cool market frenzy appeared on BitcoinEthereumNews.com. Chinese regulators are reportedly clamping down on the growing hype around stablecoins, ordering firms to stop promotions around the subject. Summary Chinese regulators have reportedly ordered firms to cancel stablecoin events and halt related research. The clampdown comes as concerns grow that local hype is fueling fraud and misleading promotions. Despite the clampdown, insiders say China is still exploring a yuan-pegged stablecoin to counter the U.S. dollar’s dominance. According to an August 8 Bloomberg report, financial regulators in China have instructed companies to cancel seminars and halt all research publications related to stablecoins. Citing people familiar with the matter, the report claims that the crackdown comes amid fears that stablecoins could be exploited as a new tool for fraudulent activities. While authorities are yet to publicly issue a statement, the report comes on the heels of a July 7 warning by the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities, crypto-related terms like stablecoins were being misued for malicious purposes. As crypto.news reported at the time, authorities warned that unauthorized entities were leveraging the growing buzz around the potential launch of yuan-backed digital assets to promote shady investment schemes, run illegal fundraising events, and exploit citizens. But despite the concerns, China’s stablecoin push still appears to be in motion behind the scenes. A recent Financial Times report revealed that insider talks for a potential stablecoin launch are growing in China, particularly as the government seeks means to offset the U.S. dollar’s dominance in the global markets. Officials are reportedly seeking expert input on how best to issue and implement stablecoins pegged to the renminbi. The long-running strict regulatory stance on the industry, including a blanket ban on local crypto operations, is also suspected to be easing, with regulators said to be reevaluating their broader stance on digital assets.…
The post Is China backing out of its stablecoin push? Regulators reportedly move to cool market frenzy appeared on BitcoinEthereumNews.com.
Chinese regulators are reportedly clamping down on the growing hype around stablecoins, ordering firms to stop promotions around the subject. Summary Chinese regulators have reportedly ordered firms to cancel stablecoin events and halt related research. The clampdown comes as concerns grow that local hype is fueling fraud and misleading promotions. Despite the clampdown, insiders say China is still exploring a yuan-pegged stablecoin to counter the U.S. dollar’s dominance. According to an August 8 Bloomberg report, financial regulators in China have instructed companies to cancel seminars and halt all research publications related to stablecoins. Citing people familiar with the matter, the report claims that the crackdown comes amid fears that stablecoins could be exploited as a new tool for fraudulent activities. While authorities are yet to publicly issue a statement, the report comes on the heels of a July 7 warning by the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities, crypto-related terms like stablecoins were being misued for malicious purposes. As crypto.news reported at the time, authorities warned that unauthorized entities were leveraging the growing buzz around the potential launch of yuan-backed digital assets to promote shady investment schemes, run illegal fundraising events, and exploit citizens. But despite the concerns, China’s stablecoin push still appears to be in motion behind the scenes. A recent Financial Times report revealed that insider talks for a potential stablecoin launch are growing in China, particularly as the government seeks means to offset the U.S. dollar’s dominance in the global markets. Officials are reportedly seeking expert input on how best to issue and implement stablecoins pegged to the renminbi. The long-running strict regulatory stance on the industry, including a blanket ban on local crypto operations, is also suspected to be easing, with regulators said to be reevaluating their broader stance on digital assets.…
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