Bloomberg: China demands local brokerages to stop promoting stablecoins to prevent market overheating and potential risks

ChainCatcher news, Bloomberg cited sources saying that China has requested local brokerages and other institutions to stop publishing research reports related to stablecoins or holding promotional seminars, in order to prevent market overheating and control potential risks.

Sources revealed that in late July and early August, some large brokerages and think tanks received guidance from financial regulatory authorities, requesting the cancellation of related activities and the cessation of disseminating research content about stablecoins.

Recently, regulatory authorities in Beijing, Suzhou, and Zhejiang have issued warnings about illegal fundraising risks related to virtual currencies and stablecoins.

Stablecoins are typically backed by cash-like assets, issued by private companies, and are often pegged to the US dollar, supported by assets such as US Treasury bills. The global supply of stablecoins is expected to reach $3.7 trillion by 2030.