China Reaffirms Crypto Crackdown, Warns Against Stablecoins Risks

China maintains its stringent stance on cryptocurrencies, highlighting concerns over stablecoins and their impact on financial regulation.

Chinese authorities warn about risks associated with stablecoins amid US dollar dominance concerns.
Pan Gongsheng, governor of the People's Bank of China, plans to expand the use of China's central bank digital currency (CBDC), the "e-CNY".
Stablecoins are criticized for lacking customer identification and anti-money laundering (AML) measures, which could create regulatory gaps.
The central bank will continue its crackdown on crypto-related activities in collaboration with law enforcement.

Regulatory Developments

Research on stablecoins is progressing, with government-backed grants available for studies on cross-border monitoring systems.
The digital yuan pilot program has been running since 2019, with transactions exceeding 14 trillion yuan.
New policy measures are expected to promote trade innovation, potentially benefiting the crypto ecosystem in China.
The China Securities Regulatory Commission may revise listing standards on the Shenzhen Stock Exchange to support emerging industries.

Crypto