Beijing Restricts Stablecoin Hype as Hong Kong Forges Ahead

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Even as Hong Kong advances its regulatory framework for stablecoin issuers, mainland Chinese authorities are taking steps to curb enthusiasm for the asset class. Financial regulators have instructed brokerages and research firms to halt stablecoin-related promotions, including reports and events, citing risks of fraud and speculation.

The directive, reported by Bloomberg, aligns with Beijing’s broader effort to limit retail exposure to dollar-linked crypto tokens—despite acknowledging stablecoins’ growing use in cross-border transactions. Officials have warned that such assets could become vehicles for illicit fundraising.

Stablecoins, typically pegged to the US dollar and backed by reserves, play a key role in crypto markets and global payments. But recent months have seen Chinese cities like Shenzhen issue public warnings about investment scams involving the tokens.

The contrast between mainland China’s restrictive stance and Hong Kong’s progressive regulatory push underscores the region’s divergent strategies toward digital assets.