China Orders Brokers to Halt Stablecoin Promotion Amid Risk Concerns
Main Idea
China has instructed brokerages to halt stablecoin promotions to mitigate risks, despite active OTC crypto trading and speculation about a softer stance on cryptocurrencies.
Key Points
1. China's leading brokerages received guidance to stop promoting stablecoins to limit risks associated with the fast-growing asset class.
2. OTC crypto trading in China remains active, with volumes reaching $75 billion in the first nine months of 2024.
3. Despite the ban, there is speculation about China potentially softening its stance on cryptocurrencies, with authorities supporting Hong Kong's push to become a digital asset hub.
4. Stablecoins are increasingly used for cross-border payments, with global supply projected to reach $3.7 trillion by 2030.
5. The People’s Bank of China has expressed concerns about uncontrolled growth of stablecoins, especially amid geopolitical tensions.
Description
Chinese financial regulators have instructed local brokerages and research bodies to halt publishing studies or hosting seminars that promote stablecoins, to limit potential risks from the fast-growing asset class. Key Takeaways: China has ordered brokerages to stop promoting stablecoins over fraud and risk concerns. The crackdown comes despite speculation of a softer crypto stance and Hong Kong’s pro-stablecoin policies. OTC crypto trading remains active in China, with $75B in volumes in the fi...
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