China Tightens Stablecoin Regulations

According to Bloomberg, it has instructed brokerage firms and related institutions in China to stop publishing research or organizing study sessions to promote Stablecoins.

The reason is China's concern about the use of Stablecoins as a new tool for illegal fundraising activities in the country.

This move comes as Beijing maintains a comprehensive ban on cryptocurrencies, while stablecoins gain traction due to their potential use in cross-border payments.

Unlike the mainland, Hong Kong's Special Administrative Region passed a Stablecoin bill in May, providing a clear legal framework for issuers of digital assets linked to fiat currency, attracting significant interest from Chinese companies.