China stops events and research on stablecoins to fight scams and keep markets safe, sticking to its strict anti-crypto rules since 2021.
Beijing warns that foreign crypto projects collecting iris scans put privacy and national security at serious risk.
Hong Kong supports stablecoins while mainland China cracks down, showing a clear split in rules across Chinese regions.
Chinese authorities have tightened their grip on stablecoin promotion and foreign crypto-linked biometric projects, signaling deeper regulatory hostility. Bloomberg reported that regulators ordered brokerages and think tanks to cancel seminars and halt research promoting stablecoins. This move began in late July and continued into early August.
Officials want to stop such scams and avoid market instability. Despite stablecoins' increasing popularity in international cryptocurrency trading, regulators worry that they could be used as instruments for fraudulent activity in mainland China.
In addition to prohibiting seminars, authorities put pressure on organizations to cease publishing studies that could promote stablecoin investments. Both the People's Bank of China and the China Securities Regulatory Commission have refrained from making public statements.
But this move is in line with Beijing's persistent anti-crypto posture, which dates back to its complete prohibition of digital currency in 2021. Chinese regulators are still skeptical about the safety of stablecoins, which are frequently based on the US dollar and continue to be an essential link in international token trade.
Biometric Data Concerns Raise Security Alarms
Moreover, China’s Ministry of State Security recently warned against foreign companies collecting sensitive biometric data through crypto incentives. On August 6, the ministry issued a public statement about an overseas firm offering tokens for iris scans. Authorities stressed that transferring such data abroad could harm both personal privacy and national security.
The description closely matches the World ID project, formerly Worldcoin, which uses Orb devices for iris verification. The project’s developer, Tools for Humanity, claims it voluntarily paused operations in Indonesia after licensing concerns. Nevertheless, Chinese officials remain resolute in blocking such initiatives from operating domestically.
National Security and Fraud Prevention Drive Policy
Consequently, the government’s twin crackdown on stablecoins and biometric-linked projects reflects a broader aim: controlling financial flows and protecting sensitive data. Besides economic risks, Beijing sees foreign crypto ventures as potential threats to sovereignty. Shenzhen authorities have already warned residents about scams disguised as stablecoin investments.
Additionally, Hong Kong’s separate approach—passing a stablecoin bill earlier this year—highlights a sharp regulatory divide within China’s territories. However, mainland regulators show no sign of softening their position. Platforms like Worldcoin, popular abroad, remain effectively barred from the People’s Republic.
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