Shenzhen warns of stablecoin scams, Hong Kong continues to promote development

The Shenzhen government (China) has just issued a public warning about scams related to stablecoins. This comes as neighboring Hong Kong is preparing to implement new regulations for stablecoin issuers.

Shenzhen's task force against illegal financial activities has called on the public to report scams related to #stablecoin , emphasizing that some illegal organizations have exploited the public's lack of understanding of stablecoins to carry out illegal fundraising, gambling, fraud, pyramid schemes, and money laundering.

In contrast, Hong Kong is taking a different approach. The city is preparing to implement a new regulatory framework for stablecoins in August, under which only licensed companies will be allowed to issue or market fiat-backed tokens to users.

Finance Secretary Paul Chan affirmed that Hong Kong supports this sector, arguing that stablecoins provide "a cost-effective alternative to the traditional financial system" and could reshape cross-border payments and capital markets. Sean Lee, co-founder of IDA, noted that Hong Kong's regulations are "very progressive compared to other jurisdictions."

However, Hong Kong's current focus is on using stablecoins for business-to-business (B2B) purposes rather than retail applications, a trend similar to the stablecoin plans of JD.com and other companies and banks exploring this technology. #HongKong