China’s regulated watchdogs squealed fraud and fraud alarms and scams as public interest began to recover.
In a statement on July 7, 2025, the Shenzhen Municipal Task Force to Prevent and Fight illegal financial activities raised concerns that misuse conditions such as ridiculous groups and virtual assets to mislead people into risky or illegal investments.
Officials warn that interest in the original digital assets has gained local momentum, with some groups taking advantage of the trends in implementing illegal funding schemes, promoting shady projects and promoting money laundering.
According to the notification, these entities often present themselves as financial innovators and tempt unsuspecting investors by issuing so-called “digital assets” or “cryptocurrencies.” In reality, they are unlicensed operators engaged in illegal activities.
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Citing “regulations on the prevention and response to illegal funding,” the task force emphasized that individuals who have been victims of such schemes are responsible for their losses. Citizens are urged to strengthen their awareness of risk, avoid blindly trusting exaggerated investment promises, and report alleged fraud to local authorities.
Crypto.News previously reported that momentum is gaining momentum around offshore stubcoins, such as JD.com and Ant Group Lobby The People’s Bank of China (PBOC) to approve the issuance of such tokens.
JD.com reportedly told the central bank that Euan-based Stablecoins are urgently needed to support the international use of the currency, especially as dollar-backed tokens like the USDT dominate the global trading settlement. Industry numbers were emotionless. Executives like former bank vice president Wang Yongli and Hashkey Chairman Xiao Feng highlight the risk of inaction.
China has yet to formally comment on the initiative, so the government’s response has yet to be seen, especially given its historic, warm regulatory stance.
Meanwhile, other APAC regions like Hong Kong and South Korea have embraced Stablecoins as part of their broader digital assets drive. Hong Kong is expected to introduce a new licensing framework for digital assets on August 1, but South Korean regulators are pushing for the creation of a legal framework to support South Korea’s winning stubcoins.
read more: Hong Kong announces Digital Asset Policy 2.0 to strengthen its use of Stablecoin, RWA tokenization and regulations
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