China Intensifies Crypto Crackdown With Latest Warning Against Stablecoins

China is maintaining its strict stance against cryptocurrencies, citing risks associated with stablecoins and their potential to undermine financial regulation. The People's Bank of China plans to expand the use of its central bank digital currency, the e-CNY. Concerns are rising about stablecoins not meeting essential customer identification and anti-money laundering requirements. China's central bank believes stablecoins can exacerbate vulnerabilities in the global financial system and impact monetary sovereignty. Despite the crackdown, research on stablecoins is progressing within China, with grants offered for studies. The digital yuan's pilot program will be expanded to include more commercial banks in its operation. New policy measures are anticipated to promote trade innovation and development, which could benefit the crypto ecosystem. Authorities will continue cracking down on domestic crypto operations and speculation. The China Securities Regulatory Commission might revise listing standards to accommodate emerging industries. China's continued caution contrasts the more accommodating approach taken in the United States with the GENIUS Act.