The Chinese authorities have told local companies to stop publishing research or organizing seminars related to Stablecoins, according to a Bloomberg Friday report.
Chinese financial regulators would have asked local brokers and other entities to cancel seminars and stop promoting research on stablecoins. Citing people familiar with the issue, Bloomberg said that the authorities feared that stablecoins can be exploited as a fraudulent activity tool.
Christopher Wong, a strategist in currency at Oversea-Chinese Banking Corp. In Singapore, Beijing could prevent a speculative thrust among retail investors.
“There is still a concern that everyone does not adequately know about cryptography and decision-makers, being pragmatic, does not want the herd mentality when investors buy something that they do not know what the risks are,” he said.
In relation: China’s cryptography liquidation plans reveal its great strategy
China settles in its financial ecosystem
This decision follows a series of regulatory steps aimed at strengthening the control of digital assets, including rules forcing the country’s banks to monitor and report risky transactions involving cryptographic assets. The supervised activities include cross -border game, underground banks and illegal cross -border financial activities involving crypto.
However, while China imposes strict rules on its continental territory, it seems to take advantage of the stabbed where it is suitable for its objectives. Hong Kong is often considered a regulatory sandbox in China, and it has recently implemented a new stablecoin issue framework with a six -month transition period accompanied by special rules.
The Hong Kong subsidiary of Major Bank Standard Charterd will associate with animoca brands of the web 3 software company to develop a Stablecoin of Hong Kong-Dollar thanks to a joint venture announced on Friday. The involvement of Standard Charted is particularly notable. The bank is one of the three entities – alongside HSBC and the Bank of China (Hong Kong) – authorized to issue Hong Kong physical dollars under the supervision of the Hong Kong monetary authority.
In addition, at the end of July, the Chinese electronic commerce giant JD.com recorded entities linked to a potential deployment of Stablecoin in Hong Kong. The same month, Ant International, a unit based in Singapore of the Ant supported by Jack Ma, would have planned to request licenses of stablecoin issuers in Singapore and Hong Kong. Jingdong Coinlink Technology Hong Kong, a subsidiary of JD Technology Group, also announced its intention to issue a stablecoin to Hong Kong Dollar in the summer of 2024.
In relation: The actions of Hong Kong Stablecoin slip while the new rules take effect, the experts see a healthy reset
Yuan Stablecoins authorized, but not in China
There are also examples based on the Yuan, but they should be used exclusively outside the borders of continental China.
According to reports from the end of July, the Chinese Blockchain Conflux announced a third version of its public network and introduced a new stablecoin supported by the Chinese Offshore Yuan. This news followed Anchorx receiving the approval of the principle of its stablecoin to the stable, AXCNH, of the Kazakhstan regulator, the Astana Financial Services Authority, at the end of February.
Although this stablecoin is based on the fiduciary currency of continental China, it aims to serve only offshore Chinese entities and the countries involved in the initiative of the Chinese belt and road. The Belt and Road initiative is a Chinese global infrastructure and an economic strategy aimed at connecting Asia, Africa and Europe through land and sea trade routes.
Despite its interior restrictions, China seems to allow the global expansion of its influence on digital currency in a selectively, but not within its own borders.
Review: China makes fun of American crypto policies, the new Dark Markets of Telegram: Asia Express
