"Chinese Authorities Halt Stablecoin Promotions... Order Suspension of Seminars by Securities Firms and Research Institutes"

Chinese authorities have reportedly instructed major securities firms and research institutes to suspend seminars and research report publications promoting stablecoins. It is explained that this measure aims to prevent excessive market interest in stablecoins from developing into speculative overheating.

On the 8th, Bloomberg, citing multiple sources, reported, "Since late July, Chinese regulators have requested some major securities firms and think tanks to cancel seminars related to stablecoins and stop distributing materials," adding, "Authorities are also concerned that this asset class could be abused for illegal activities such as fraud."

The market has been paying attention to recent indications that China’s cryptocurrency policy stance may be somewhat easing. In particular, as Hong Kong established its own regulatory framework for stablecoin issuance, interest from mainland enterprises surged.

Previously, Pan Gongsheng, Governor of the People's Bank of China (PBOC), stated last June, "Stablecoins could serve as a means to supplement weaknesses in the existing international payment system amid escalating geopolitical tensions."

Some market experts expressed a cautious stance regarding recent optimism. Christopher Wong, OCBC Bank’s foreign exchange strategist, said, "Chinese policymakers are wary that excessive attention to some asset classes leads to 'herd mentality,'" and explained, "They are concerned that concentration may occur among those who do not fully understand the risks."

According to Chainalysis, from January to September 2024, the scale of over-the-counter digital asset transactions in China reached $75 billion. Despite a comprehensive ban on cryptocurrency trading by the authorities, active trading through unofficial channels continues, according to analysis.

Recently, local governments in Beijing, Suzhou, and Zhejiang Province have issued consecutive warnings to investors, noting an increase in illegal fundraising cases related to stablecoins.