China halts stablecoin promotions and research domestically while advancing digital yuan projects offshore.
Author: Akshat Thakur
August 8, 2025 — Chinese regulators have reportedly ordered domestic firms to halt all seminars and research activities related to stablecoins. The crackdown reflects Beijing’s growing concern about retail speculation and the potential misuse of digital assets.
According to a report by Bloomberg on August 2, Chinese financial authorities have directed domestic brokers and research entities to suspend all seminars and publications linked to stablecoins. The action appears to be part of China’s broader effort to clamp down on speculative activity in the digital asset sector.
Sources familiar with the situation said officials are worried that stablecoins could be used to facilitate fraud. There are also concerns that retail investors might be swept into volatile markets without fully understanding the risks.
Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp., noted, “Policymakers are trying to avoid herd mentality from inexperienced investors who may not understand the crypto risks.”
The stablecoin restrictions follow a series of financial policy reforms aimed at regulating digital assets more aggressively. Mainland banks are now required to monitor and report suspicious transactions, including those tied to underground financial networks and cross-border crypto .
Despite this restrictive stance, China is not completely closing the door on stablecoins. Rather, it seems to be pursuing a dual strategy: control at home, experimentation abroad.
While the mainland tightens restrictions, Hong Kong often considered a sandbox for Chinese financial experiments — is rolling out a stablecoin issuance framework. This includes a six-month transition period and new rules for compliance.
Recently, Standard Chartered’s Hong Kong unit partnered with Animoca Brands to build a Hong Kong-dollar stablecoin. This project gained attention due to the bank’s status as one of three institutions authorized to issue Hong Kong’s physical currency.
JD.com has also registered new entities tied to stablecoin operations in the city. Meanwhile, Ant International (a subsidiary of Jack Ma’s Ant Group) is reportedly preparing to apply for stablecoin licenses in both Singapore and Hong Kong.
Though China restricts stablecoin use domestically, it is promoting offshore yuan-based digital assets. In July, Conflux announced the launch of a new public blockchain and an offshore yuan-pegged stablecoin. AnchorX also gained regulatory approval in Kazakhstan for its yuan-backed stablecoin, AxCNH.
These projects are intended for use outside of China, particularly among participants in the Belt and Road Initiative a geopolitical strategy connecting Asia, Africa, and Europe through infrastructure and trade.
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