China Tightens Stablecoin Rules Amidst Crackdown on Speculative Trading

China has taken a decisive step in regulating stablecoins, aiming to curb speculative trading activities. The People’s Bank of China (PBOC) issued guidelines that categorize stablecoins as high-risk virtual currencies and imposed stricter controls on their usage. While mainland China faces limitations on stablecoin speculation, Hong Kong is adopting a more permissive approach, focusing on cross-border payments and supply chain finance. The PBOC’s actions are expected to have far-reaching impacts on the crypto market as they reshape industry practices and regulations.