China cracks down on stablecoin promotions, research and seminars

China has recently cracked down on stablecoin promotions, research, and seminars, directing local brokers, research institutions, and companies to halt all activities related to stablecoins.

This regulatory move, which took place in late July and early August 2025, aims to curb the risks of fraud etc. Chinese authorities have specifically instructed cancellations of seminars and removal of related research publications, fearing that stablecoins could be exploited for fraudulent schemes within mainland China.

Shenzhen authorities also noted a rise in scams involving stablecoin investments, fueling regulatory caution. Despite these domestic restrictions, China still appears to leverage stablecoins for specific strategic purposes outside its borders, including yuan-based stablecoins used offshore in alignment with initiatives.

This crackdown contrasts with regulatory approaches elsewhere, such as the U.S., which recently passed the GENIUS Act establishing a formal governance framework for stablecoins, or Hong Kong, which implemented the Stablecoins Ordinance establishing licensing and strong KYC (know your customer) requirements.

Hong Kong is promoting a regulated but innovative stablecoin environment with applications and licensing underway, serving as a regulatory sandbox or hub for digital assets in the region.

This divergence highlights China's prioritization of financial stability and fraud prevention over broader adoption within its territory, while supporting controlled usage abroad.

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