To curb the growing interest in stubcoin, China has ordered local brokerages and other organisations to stop publishing research reports and hold seminars to promote asset classes.
From late July to early August, several major brokerages and think tanks cancelled the event and stopped Stablecoin’s research into orders from financial regulators.
Authorities are also concerned that stubcoin could be used as a new tool for fraudulent activities in mainland China. Cryptocurrency trading is banned entirely within the country, but recent official statements have led to speculation that China’s approach to the sector could soften. In particular, there is growing interest from Chinese companies as well as the approval of Hong Kong’s development as a digital asset hub that came into effect this month.
“Chinese policymakers don’t want investors to focus on asset classes that don’t have enough information. If risk is unknown, they want to avoid thinking about herds.”
Despite China’s crypto ban, in the first nine months of 2024, commercial digital asset transactions reached $75 billion, according to data from chain analysis. In recent months, warnings have been raised about illegal funding activities related to cryptocurrencies and stubcoins in areas such as Beijing, Suzhou and Z-jiang.
*This is not investment advice.
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