China bans Firms From Promoting Stablecoin

Chinese regulators have enacted a new ban preventing local firms from hosting seminars or publishing research papers related to stablecoins.

Sources familiar with the matter revealed that the move comes amid growing concern from authorities that stablecoins could be exploited for fraudulent activities.

Financial regulators aim to curb speculative frenzies among retail investors, often fueled by limited knowledge and aggressive crypto marketing.

Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. in Singapore, noted

“Policymakers are pragmatic—they’re wary of a herd mentality where uninformed investors pile into risky products.”

This latest directive is part of China’s broader effort to tighten control over its financial system. Recent rules require banks to strengthen oversight, including monitoring and flagging suspicious transactions involving digital assets.

Authorities have been targeting activities such as cross-border gambling, illicit financial transfers, and underground banking—efforts aimed at blocking capital outflow and other criminal uses of crypto.

China explores crypto, just not within its own borders

While mainland China continues to impose strict rules, it has allowed Hong Kong to operate as a regulatory sandbox to test new approaches.

Hong Kong recently unveiled its own stablecoin framework, including a six-month transition period for new issuers and tailored compliance requirements.

Progress is already visible: Standard Chartered’s Hong Kong arm has teamed up with Animoca Brands to create a HKD-pegged stablecoin, taking advantage of the city’s progressive digital currency stance.

Similarly, Chinese conglomerate JD.com and Ant Group’s Singapore branch have announced stablecoin plans and licensing efforts in both Singapore and Hong Kong.

China has also advanced its own yuan-pegged stablecoin initiatives—but notably, these are restricted to use outside the mainland.

Blockchain platform Conflux recently launched the third version of its public network, introducing a new stablecoin backed by offshore Chinese yuan.

In February, AnchorX received partial regulatory approval in Kazakhstan for its yuan-pegged stablecoin, AxCNH.

Though based on the Chinese yuan, AxCNH is intended for foreign businesses and partners of the Belt and Road Initiative, extending China’s digital currency influence internationally.

The Belt and Road Initiative is China’s global infrastructure and economic strategy, aimed at connecting Asia, Africa, and Europe through extensive trade routes.

China’s Dual Strategy on Stablecoins

Despite restrictive domestic policies, China’s approach to stablecoins is calculated and two-pronged. Domestically, authorities are determined to prevent retail speculation and curb any misuse of digital assets.

Internationally, however, Beijing is strategically supporting offshore yuan-pegged stablecoins to expand its economic reach and strengthen its role in global trade networks.

This bold yet selective openness underscores China’s intent: maintain absolute control within its borders, while leveraging stablecoins abroad as a tool for geopolitical and economic influence.