[IMPORTANT: Shanghai Regulator Considers Policy on Stablecoins and Cryptocurrencies Amid China’s Crypto Ban]

The Shanghai State-owned Assets Supervision and Administration Commission convened a meeting to discuss strategic regulatory responses to stablecoins and digital currencies, signaling a shift in attitude despite the existing crypto ban in China. Major Chinese companies like JD(.)com and Ant Group are advocating for yuan-pegged stablecoins to challenge the dominance of U.S. dollar-linked cryptocurrencies, with plans to seek licenses in Hong Kong where stablecoin legislation is upcoming. While Bitcoin recently reached an all-time high near $112,000, the Chinese central bank remains cautious, pointing out substantial regulatory challenges posed by digital currencies.