PBOC maintains crypto ban amidst global regulatory efforts.
On December 21, an article by Zhao Zhongxiu of the University of International Business and Economics suggested pilot stablecoin regulations in Free Trade Zones like Qianhai and Hainan.
Such pilots aim to enhance China’s financial technology landscape, testing stablecoin regulation in targeted regions without affecting mainland market stability.
Zhao Zhongxiu’s proposal for FTZ pilot programs reflects a strategic shift towards aligning with global stablecoin trends. Free Trade Zones such as Qianhai and Hainan figure prominently in the plan, aiming to establish a “Cross-Border FinTech Lab” and an offshore RMB stablecoin innovation pilot.
Immediate implications include laying the groundwork for digital trade enhancement and creating a stablecoin “whitelist”. These efforts emphasize strengthening blockchain infrastructure while implementing rigorous risk control measures, including transparent reserve audits.
“Our aim is to explore innovative frameworks such as a Cross-Border FinTech Lab and a stablecoin whitelist to enhance the stability of digital currencies in designated zones.” — Zhao Zhongxiu
Market reactions indicate cautious optimism. Although no direct statements from major crypto figures have been observed, the proposal aligns with existing stablecoin frameworks, encouraging dialogue on digital finance’s future in China. The People’s Bank of China remains firm on existing crypto trading bans.
Did you know? The Hong Kong Stablecoin Ordinance, effective August 2025, mandates banking-level standards for issuance, influencing China’s regulatory approach in Free Trade Zones.
Ethereum (ETH) is currently priced at $2,975.87 with a market cap of $359.17 billion and dominance of 12.04%. Its 24-hour trading volume, reported by CoinMarketCap, stands at $7.69 billion, reflecting a -66.39% change. ETH’s 30-day price change shows a 6.06% increase, contrasting with a 30.82% drop over the last 90 days.
The Coincu research team suggests these stablecoin initiatives could bolster China’s financial infrastructure, encouraging fintech innovation while maintaining compliance. Such regulatory frameworks might attract digital finance activities, with potential benefits in digital trade and financial technology advancements.
