Emre Yumlu 
Chinese regulators have taken a significant step toward halting stablecoin promotions nationwide. According to Bloomberg, by the end of July, numerous local brokerages and research firms received official instructions to suspend the release of stablecoin-focused research reports, cancel related seminars, and pause all public promotional activities.
A Response to Rising Interest
The decision comes amid a rapid increase in domestic investor interest in stablecoins. While authorities acknowledge that the dollar-pegged structure of these digital assets can facilitate cross-border payments, they also warn of associated risks such as money laundering and illegal fundraising. Interest has surged notably since Hong Kong passed its stablecoin legislation in May, leading to a spike in information requests from Chinese investors.
From Shenzhen Warning to Nationwide Restriction
Earlier in July, Shenzhen’s local government issued a public warning about scams operating under the guise of stablecoin investments. Similar alerts quickly spread across the country, culminating in the formal restriction now in place.
Hong Kong’s Different Approach
In contrast to Beijing’s strict stance, Hong Kong is moving forward with its own stablecoin issuance framework. Operating under the “One Country, Two Systems” principle, the special administrative region aims to position itself as a global hub for digital assets, attracting international investors to its market.
New Push for the Digital Yuan
Meanwhile, the People’s Bank of China announced the establishment of a new operational center for the digital yuan (e-CNY) in Shanghai. The goal is to expand its cross-border usage and accelerate global circulation through traditional financial channels.
This approach shows a clear divergence between mainland China’s regulatory caution toward private stablecoins and Hong Kong’s ambition to embrace them as part of its financial growth strategy.
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