The world of stablecoin in China has recently been swept by a wave of tension and interest, especially after the official statement from Ant Group, one of the main players in Chinese digital finance.
In recent days, the company has firmly denied any involvement in alleged stablecoin projects linked to rare earths, in collaboration with the People’s Bank of China.
In a statement released on Weibo and picked up by many outlets, Ant Group stated that it has never planned nor considered initiatives of this kind, thus putting an end to a series of fake news and unfounded speculations.
According to data collected by digital finance experts, these rumors originated from misunderstandings regarding the role of Ant Group in the blockchain sector, but they never had any official basis.
Strict rules: how the stablecoin regulation really works in China
The regulation of cryptocurrencies in China remains among the most stringent worldwide, with a total ban on trading of stablecoins and cryptocurrencies by residents. Recently, the authorities have intensified controls, introducing strict restrictions not only on transactions but also on the dissemination of analysis and advertising related to digital assets.
New directives have imposed on major brokers to suspend any type of public comment regarding stablecoin, in order to prevent fraud and speculation and safeguard internal financial stability. Industry analysts observe that these measures, implemented starting in 2023, have reduced unauthorized activities related to cryptocurrencies in China by 70%.
Suspension of public financial analyses by local brokers
Prohibition of promotion and advertising of products linked to stablecoin
Increase in controls against fraud and illicit capital transfers
The Chinese authorities therefore continue to issue repeated warnings to investors, highlighting the risks associated with scams and unregulated schemes, especially in a context where OTC trading remains significantly widespread.
Strategies and innovation: the development of stablecoin at the margins of the law
Despite the regulatory rigor, the push for blockchain innovation shows no signs of stopping. It must be said that the scenario is evolving: numerous giants, including Ant Group, are considering the integration of international stablecoins like USDC – but always respecting the limits imposed by both Chinese regulations and international regulations.
In parallel, companies like JD.com are considering obtaining licenses for stablecoin in more “crypto-friendly” jurisdictions like Hong Kong, with the aim of leveraging regulated markets to optimize and make global payments less costly. According to internal industry data, over 60% of Chinese enterprises involved in digital finance are exploring offshore solutions for blockchain projects.
An interesting aspect is that many companies feel the need to oversee foreign markets and offer innovative services, often taking advantage of offshore jurisdictions as a tool to circumvent the limits imposed by mainland Chinese regulations.
Stablecoin in Hong Kong: bridge between regulation and financial freedom?
Among the most significant innovations is the development of stablecoins pegged to the Hong Kong yuan. In May 2025, Hong Kong enacted a law establishing a licensing regime for issuers of stablecoins linked to fiat currencies, thus paving the way for the regulated issuance of these digital assets.
This initiative is generating growing interest, especially among Chinese companies that see Hong Kong as a less rigid environment compared to the mainland, and an opportunity to facilitate cross-border transfers. According to an official report from the Hong Kong government, the new regulation promises to reduce transaction costs by up to 30% compared to traditional methods.
Reduced costs on international payments
Immediate execution of operations
Maximum traceability and transparency with the blockchain
Easier alignment with global anti-money laundering criteria
Surveillance and warnings: Chinese authorities do not grant respite
In recent months, many cities in mainland China have seen a strengthening of anti-fraud controls on stablecoins and public communications related to crypto-assets. Suspicious initiatives are immediately blocked, and regulators maintain close monitoring of any possible irregularities or unauthorized promotion.
This approach rigid continues the hard line adopted by Beijing since 2017, always with the aim of preserving financial stability and protecting investors. According to data collected by supervisory institutions, the controls have led to a 55% reduction in fraud related to digital assets compared to 2024.
Global markets and the new race for regulation: where do we stand?
If the internal ban remains consolidated, international pressure towards global standards for stablecoins grows in parallel. Several countries, especially in Europe and North America, have introduced specific regulations recognizing the importance of stablecoins in contemporary finance. A significant example is the EU’s MiCA regulation, partially in force from June 2024, which establishes stringent rules for stablecoin issuers. For more details, refer to the European Commission’s official page on MiCA.
A recent report by Ripple highlights that the global stablecoin market could rapidly expand, growing from the current approximately 250 billion dollars to over 2 trillion dollars, thus emphasizing the increasing importance of these assets in facilitating cross-border payments and financial transactions. Industry companies like Ripple and Western Union are already experimenting with stablecoins with the aim of making international transactions faster and more secure.
China, for its part, observes carefully, studying how to maintain internal control without losing its role as a protagonist in technological export and blockchain innovation.
Rumors, facts, and transparency: Ant Group clarifies its strategy
The statement from Ant Group, which dismantled the rumors about stablecoin projects linked to rare earths, emphasizes the importance of transparency adopted by major tech companies in China. It is a decisive response against speculation and a clear message to investors: every initiative in the stablecoin and blockchain field will be the result of a rigorous analysis of the current regulations and the associated systemic risks.
There is no room for “grey” operations or those not fully compliant with the guidelines of the Chinese authorities. Legal experts specializing in fintech confirm that compliance with regulations is now a key factor for the competitiveness of companies in the Chinese market.
FAQ: are stablecoins allowed in China today?
Only in very limited cases: in China, the trading of stablecoins within the country is prohibited for citizens, except for pilot projects or international operations subject to strict regulatory control. The stablecoins “made in China” are indeed primarily intended for foreign or offshore uses, in line with a particularly stringent regulatory framework. Further details on the current restrictions are available on the Cybersecurity Magazine website.
Blockchain and stablecoin: race for innovation under control
The implementation of blockchain in Cina continues with the support of institutions, especially for targeted technological and financial uses. However, at the current state, native stablecoins remain limited to international contexts or offshore jurisdictions. Companies continue to invest in innovation, aware that each project must comply with the normativa locale, ensuring transparency and legal compliance at the same time.
This gives rise to a double parallel path: on one side technological research, on the other the strict adherence to rules. According to internal data from the Chinese Blockchain Association, in 2025 the number of compliance-oriented projects has increased by 40% compared to the previous year.
Conclusions: between national rigidity and global temptation
The landscape of stablecoin in China remains characterized by a tension between strict controls and a strong interest in innovation. In the coming months, much will depend on the openness of the Chinese authorities and the pace at which the global context will develop and adopt shared standards for digital assets.
In the meantime, transparency and prudence remain essential elements for companies engaged in such a delicate and constantly evolving sector.
