China’s regulatory authorities have issued a strong warning against scams linked to stablecoins and digital assets, just as public interest in these technologies begins to surge.
On July 7, 2025, the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities released a statement cautioning the public about fraudulent schemes exploiting buzzwords like “stablecoins” and “virtual assets” to lure individuals into illegal or high-risk investments.
The warning comes amid rising local enthusiasm for yuan-pegged digital assets. Officials noted that certain groups are taking advantage of the trend to run unauthorized fundraising operations, promote questionable projects, and engage in money laundering activities.
According to the notice, these groups often pose as financial innovators, offering so-called “digital assets” or “virtual currencies” without proper licensing. In reality, they are engaged in illicit activities under the guise of cutting-edge finance.
The task force cited the Regulations on Preventing and Dealing with Illegal Fundraising, emphasizing that victims of such schemes bear the responsibility for any financial losses. Citizens were urged to remain vigilant, question overly optimistic investment promises, and report suspicious activity to local authorities.
As previously reported by crypto.news, interest is growing in offshore yuan-backed stablecoins. Major China-based tech firms such as JD.com and Ant Group have reportedly been lobbying the People’s Bank of China (PBOC) to approve the issuance of such tokens.
JD.com has argued that yuan-pegged stablecoins are urgently needed to support the internationalization of the Chinese currency, particularly in light of the dominance of U.S. dollar-backed tokens like USDT in global trade settlements. Industry leaders including former Bank of China vice president Wang Yongli and HashKey chairman Xiao Feng have echoed this sentiment, warning of the potential consequences of regulatory inaction.
So far, the Chinese government has not officially commented on the matter. Observers are closely watching how Beijing will respond, especially given its historically cautious stance on digital assets.
Meanwhile, other Asia-Pacific jurisdictions such as Hong Kong and South Korea are moving forward with stablecoin-friendly regulations. Hong Kong is set to roll out a new licensing regime for digital assets on August 1, while South Korea is working on a legal framework to support stablecoins pegged to the Korean won.
