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Beijing tightens its grip of Stablecoins activity by ordering main financial institutions to cease any promotion of this class of digital assets. To reduce the growing madness and limitation of speculative risks, the regulatory authorities of the broker, Think tanks and research teams demanded that they cancel the seminars dedicated to the Stablecoins and cease to publish the interconnected content.
In short
- Beijing intensifies the suppression of stablecoins to slow fraud and speculative risks.
- Hong Kong accepts the regulation of stablecoins and is placed as a center of digital finance.
- China supports the expansion of digital Juan, while the United States is pushing regulated stablecoins supported by a dollar.
Repression in full increase in interest in stablecoins
The Directive, which was published at the end of last month, is a new feature of caution from China to cryptocurrency, especially tokens supported by the US dollar. This reflects growing concerns in the face of fraud, illegal lifting of capital and investment madness of individuals.
The Shenzhen Authorities recently warned against fraud masked in stable locations, between one example of national concerns around these assets.
As Bloomberg informed, continental China officially prohibits transactions in cryptocurrencies, but over -changed -the exchange (OTC) remain active. According to the chains, the Fathers’ flows could reach $ 75 billion by the end of the first half of 2024.
In addition to fraud risks, regulators are also worried about the mass behavior of private investors. Fear: The fact that a speculative wave does not cause great financial instability within, in a context where most consumers have only a superficial knowledge of digital assets. Therefore, the government operates a preventive limitation of exposure before the degeneration of the situation.
Hong Kong watches his own way
While continental China solidifies tone, Hong Kong accepts the opposite approach. The city has recently established a regulatory framework for supervision of the Stablecoin issuers and attracted the attention of companies on the continent.
Thanks to the “Earth, two systems” principle, Hong Kong retains autonomy that allows it to build its own regulation. The city is therefore located as an experimental field for innovations in digital financing in the region.
This regulatory divergence is far from harmless: it suggests that Beijing sees Hong Kong as a laboratory for testing digital assets and as a walls against risks. At the same time, Banque Populaire de China (PBOC) continues to develop its digital currency of the central bank. Recently, in Shanghai, the International Operational Center was launched to support the cross use of digital Juan.
Global prospects form
While China proceeds cautiously, the United States has decided to official supervision. The recently adopted Act of Brilliant Act establishes a legal framework for stabnecoins supported by the dollar. This comparison emphasizes the Chinese strategy: promoting a survey under supervision through official channels and sanctioning unauthorized practices.
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Peter is a qualified financial and crypto journalist who simplifies complex topics through clear writing, thorough research and sharp industry and provides the reader’s content for today’s rapidly developing digital world.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.