Chinese authorities have directed local firms to cease publications and events related to stablecoins, as reported by Bloomberg. The financial regulators are concerned stablecoins could be misused for fraudulent activities, emphasizing the risks posed to uninformed retail investors. Christopher Wong, a currency strategist, indicated that the government is wary of a speculative rush driven by a lack of understanding within the public regarding cryptocurrencies. This regulatory action follows several measures to tighten control over digital assets in China, which includes monitoring activities like cross-border gambling and illegal financial practices involving cryptocurrencies. Despite the stringent rules on the mainland, China appears to be promoting stablecoins in regions like Hong Kong, which is seen as a regulatory testing ground, with plans for Hong Kong-dollar stablecoins being developed in collaboration with entities like Standard Chartered and Animoca Brands. Meanwhile, yuan-based stablecoins are designed for offshore use only, aligning with the nation's Belt and Road Initiative.

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