Chinese Regulators Order Brokers to Halt Stablecoin Promotion Amid Speculative Frenzy

Chinese regulators have directed major domestic brokerages to cease publishing research and promotional content related to stablecoins, in a move aimed at curbing what they perceive as an escalating speculative frenzy. The directive, confirmed by multiple sources, reflects a tightening of regulatory scrutiny on the asset class amid growing concerns over financial stability and the potential for illicit activity [1][2]. The order prohibits brokerages from organizing or endorsing seminars, issuing research reports, or engaging in public commentary that could drive further interest in stablecoins [3][4].

This directive, issued in late July and early August, appears to have been extended to influential think tanks, with some of the country’s leading financial institutions receiving direct guidance from authorities. The timing of the crackdown—just months after initial signs of cautious exploration—marks a sharp reversal in official tolerance for stablecoin-related activities [5]. The coordinated pressure is part of a broader attempt by Beijing to suppress the narrative around dollar-pegged crypto assets, which have become an increasingly popular way for Chinese investors to access digital finance through cross-border channels [6].

The regulatory push is seen as part of China’s long-standing cautious approach to cryptocurrencies, particularly after the 2021 ban on exchanges and mining operations. The latest actions reinforce the government’s emphasis on centralizing control over financial innovation and ensuring that emerging technologies remain within regulatory boundaries [7]. Although the Chinese government has embraced blockchain infrastructure as a technological innovation, it has maintained a firm ban on most decentralized cryptocurrencies outside of select state-supervised blockchain pilots.

Behind the scenes, local governments are assessing the implications of the stablecoin trend. In Shanghai, regulators reportedly held a strategy meeting with local officials to evaluate stablecoin-related risks and responses. However, a post summarizing the meeting was later deleted from the Shanghai State-owned Assets Supervision and Administration Commission’s official WeChat page, suggesting that central authorities are clamping down on even high-level public discourse around the topic [8].

Despite the mainland’s strict regulations, stablecoins remain widely used by Chinese investors, often accessed through offshore platforms or over-the-counter (OTC) intermediaries. The crackdown on brokerages appears aimed at cutting off institutional endorsement that could accelerate public adoption of these assets. This latest move raises questions about the long-term prospects for digital asset education and engagement in mainland China, even as the global conversation around stablecoins becomes increasingly mainstream [9].

The regulatory environment in mainland China contrasts sharply with developments in Hong Kong, where a stablecoin regulation framework was approved in May, allowing licensed entities to issue fiat-backed stablecoins under supervision. The mainland’s approach underscores its attempt to firewall domestic financial behavior from external crypto-related influence [10].

Sources:

[1] Bloomberg.com (https://www.bloomberg.com/news/articles/2025-08-08/china-tells-brokers-to-stop-touting-stablecoins-to-cool-frenzy)

[2] Cointelegraph (https://cointelegraph.com/news/chinese-regulators-urge-local-businesses-to-stop-stablecoin-promotion)

[3] Cryptopolitan (https://www.cryptopolitan.com/china-stop-local-brokers-from-stablecoins/)

[4] Benzinga (https://www.benzinga.com/crypto/cryptocurrency/25/08/46995987/stablecoins-under-fire-in-china-while-us-enacts-a-federal-stablecoin-law)

[5] Bitcoin.com (https://news.bitcoin.com/chinas-stablecoin-whiplash-from-quiet-exploration-to-sudden-crackdown/)

[6] AInvest (https://www.ainvest.com/news/china-bans-broker-promotions-stablecoins-cool-market-frenzy-2508/)

[7] FinanceFeeds (https://financefeeds.com/china-financial-regulators-move-to-cool-overheated-stablecoin-frenzy/)

[8] Cryptonews (https://cryptonews.com/news/china-orders-brokers-to-halt-stablecoin-promotion-amid-risk-concerns/)

[9] CoinMarketCap (https://coinmarketcap.com/community/articles/68965be055ec7778c0d49288/)