Beijing's Haidian District Regulators Crack Down on Unauthorized Stablecoin Fundraising to Curb Market Risks

The Haidian District Local Financial Supervision Administration in Beijing has issued a formal notice cautioning against unauthorized stablecoin fundraising, emphasizing that such activities violate China’s financial regulations and pose risks to market stability. The warning, aimed at entities promoting "financial innovation" or "digital assets" for capital raising, underscores that only legally authorized organizations may engage in fundraising. Regulators have identified stablecoins and other digital currencies as tools for unlawful financial schemes, reflecting ongoing efforts to curb speculative practices and regulatory arbitrage in digital asset markets [1].

The notice highlights the government’s broader strategy to maintain financial order by preventing decentralized tools from being exploited for illegal capital mobilization. While no immediate asset seizures have occurred, the move aligns with China’s historical crackdown on cryptocurrency-related activities, including the 2017 ban on initial coin offerings (ICOs) and exchanges. The warning also signals heightened scrutiny of foreign actors operating within China’s jurisdiction, as evidenced by the Foreign Ministry’s confirmation of a U.S. executive’s involvement in a criminal case tied to alleged regulatory breaches [1].

Market observers note that the regulatory focus on stablecoins stems from concerns over their potential to circumvent capital controls and undermine monetary policy. By pegging value to fiat currencies, stablecoins could facilitate unregulated cross-border capital flows, complicating efforts to enforce domestic financial regulations. Analysts from the Coincu research team suggest that stricter measures in China might influence global stablecoin usage, particularly if similar warnings extend to other digital asset markets [2].

The warning comes amid a growing divergence between China’s regulatory approach and global practices. While Hong Kong’s Monetary Authority announced plans to license stablecoin issuers as of August 1, 2025, Beijing’s stance remains firmly opposed to unlicensed digital asset activities. Eddie Yue, Hong Kong’s Monetary Authority CEO, emphasized that Hong Kong’s regime would differentiate itself from unregulated mainland practices, underscoring the regulatory split within China [1].

Regulators have not specified penalties for non-compliance with the notice, but the emphasis on legal accountability suggests severe repercussions for violations. Foreign firms operating in China are advised to review stablecoin-related activities for compliance, particularly as the government continues to prioritize financial stability and sovereignty. The absence of a formal public statement complicates assessing the crackdown’s scope, though enforcement actions like the Wells Fargo executive’s detention indicate a broad application of the policy [1].

The Tether USDt (USDT) price remains stable at $1.00 as of July 25, 2025, with a market cap of $16.27 billion and 24-hour trading volume of $14.31 billion. While these figures reflect the stablecoin’s global usage, analysts caution that regulatory shifts in major markets could disrupt its liquidity [2].

Source:

[1] [Beijing Alleged Wells Fargo Executive Banned from Leaving China ‘Involved in a Criminal Case’] [https://www.epochtimes.com]

[2] [Coincu Research Team Insights on Stablecoin Regulation] [https://coinmarketcap.com/community/articles/6882de127d1070328ddde521/]