China Instructs Financial Intermediaries to Suspend Cryptocurrency Workshops and Discussions
In a move aimed at regulating the rapidly growing stablecoin sector, Hong Kong has introduced a new set of rules for stablecoin issuers, effective from August 1, 2025. The new regulations establish a comprehensive regulatory regime for fiat-referenced stablecoins (FRS), requiring licensing for issuers and marketers from the Hong Kong Monetary Authority (HKMA).
Under the new regime, anyone issuing a stablecoin in Hong Kong or a stablecoin pegged to the Hong Kong dollar outside Hong Kong must obtain a license from the HKMA. Entities actively marketing or offering stablecoins to the Hong Kong public also require HKMA licensing. The stablecoin is defined as a cryptographically secured digital token that maintains a stable value referencing a single asset or a basket of assets and is used as a medium of exchange.
The HKMA has published detailed regulatory guidelines including supervision guidelines for stablecoin issuers, Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) guidelines for licensed issuers, and transitional provisions for pre-existing issuers before August 1, 2025. As of late July 2025, no licenses had been issued yet, but the HKMA is accepting applications with an initial deadline for early consideration of September 30, 2025.
On the mainland, local governments in cities like Beijing, Suzhou, and Zhejiang have issued public risk alerts linked to crypto and stablecoin scams. However, the People's Bank of China and the China Securities Regulatory Commission have not responded to requests for comment regarding the action. The new restrictions suggest that the mainland is still approaching the stablecoin sector carefully, reflecting a cautious stance aimed at avoiding instability linked to rapid investment trends.
The surge of interest from mainland Chinese firms in stablecoins following Hong Kong's rule introduction has been noted. However, China's financial regulators have asked top brokerages and think tanks to stop holding seminars and publishing research on stablecoins, indicating a continued cautious approach.
Despite China's ban on crypto trading, over-the-counter (OTC) activity remains strong, with unofficial markets still active across the country.
The efforts are part of a broader campaign to limit financial risks while keeping public excitement in check. Industry projections expect the global stablecoin supply to grow to $3.7 trillion by 2030. Christopher Wong, a Currency Strategist at Oversea-Chinese Banking Corp in Singapore, stated that Chinese policymakers prefer to keep financial discussions calm to avoid herd behavior, suggesting that China might be softening its stance on digital assets. However, no recent detailed regulatory updates or new actions specifically from mainland China financial regulators on stablecoins are indicated in the available data.
In summary, Hong Kong has enacted a new, comprehensive stablecoin regulatory regime effective August 1, 2025, requiring licensing of fiat-referenced stablecoin issuers and marketers from the HKMA. The regime includes supervisory, AML/CFT, and licensing guidelines. No licenses issued yet, but applications are being accepted. No recent detailed regulatory updates or new actions specifically from mainland China financial regulators on stablecoins are indicated in the available data. The surge of interest from mainland Chinese firms in stablecoins following Hong Kong's rule introduction has been noted. These efforts are part of a broader campaign to limit financial risks while keeping public excitement in check. Global stablecoin supply is expected to grow to $3.7 trillion by 2030, based on industry projections.
- The introduction of new regulations in Hong Kong for stablecoin issuers, effective from August 1, 2025, indicates a growing focus on stablecoins in the finance and technology sectors.
- The comprehensive regulatory regime in Hong Kong requires licensing for any business actively marketing or offering stablecoins to the public, highlighting the increasing role of stablecoins as a medium of exchange.
- While China has banned crypto trading, the interest from mainland Chinese firms in stablecoins following Hong Kong's rule introduction suggests a potential shift in China's approach towards digital assets, aligning with a broader campaign to manage financial risks.
