China Enforces Restrictions on Marketing of Stablecoins
In a recent development, China has issued a regulation aimed at stablecoins, a class of digital assets, specifically targeting domestic financial institutions. This move is part of Beijing's intensifying campaign to curb retail enthusiasm for dollar-pegged tokens.
The regulation, which was reported by Bloomberg, is designed to control speculation and prevent scams related to stablecoins. Chinese regulators have ordered domestic financial institutions to stop promoting stablecoins and have even banned research reports and public seminars on these digital assets.
However, the regulation does not specify any penalties for non-compliance, unlike the situation in Hong Kong, where the stablecoin issuance regime's stance on penalties remains unclear.
This contrasts with Hong Kong's advancement in stablecoin issuance, as the city pursues its own policy on these digital assets, separate from mainland China. Hong Kong's approach towards stablecoins is not explicitly stated, but it is moving towards issuing stablecoins and has not yet addressed the potential role of these assets in cross-border finance.
The Chinese regulation does not currently address cross-border finance either. This divergence in approaches towards stablecoins within Greater China is significant, particularly given authorities' concerns about stablecoins facilitating illegal fundraising in mainland China.
It's important to note that the search results do not explicitly specify which financial institutions in China were ordered by regulators in July and August 2025 to stop promoting stablecoins. However, private crypto activities remain banned on the mainland, and tech giants like JD.com and Ant Group lobby for yuan-backed stablecoins, with regulatory caution continuing in Shanghai and Hong Kong regarding such digital assets.
In summary, China's regulation of stablecoins is aimed at curbing retail enthusiasm and preventing scams, while the objectives of Hong Kong's stablecoin issuance regime are not explicitly stated. The approaches towards stablecoins within Greater China are divergent, with China tightening restrictions and Hong Kong moving forward with its own stablecoin issuance regime.
