China Crypto Regulation Sees Growing Push for Yuan-Based Stablecoin

Key Points

1. Shanghai officials held a meeting to discuss digital asset growth strategies, involving around 60–70 participants, including a policy expert from Guotai Haitong Securities.

2. Tech giants like JD.com and Ant Group are pushing for Yuan-based stablecoins to compete with US-dollar-backed cryptocurrencies, with new regulations taking effect on August 1.

3. China's regulatory environment remains challenging, with recent warnings from industry groups about stablecoin-linked scams and past crackdowns on crypto mining.

4. Interest in digital assets is rising in China, with related stocks surging 88% over three months and Hong Kong's index more than doubling.

5. Global crypto momentum continues, with Bitcoin hitting record highs and predictions of further price increases by year-end.