Stablecoin News – In a statement issued on July 7, 2025, Shenzhen’s Special Task Force for Preventing and Combating Illegal Financial Activities raised alarms about a surge in stablecoin-related scams. The warning comes as public interest in yuan-pegged digital assets grows, driven by China’s ongoing development of its digital yuan and the broader crypto buzz in neighboring Hong Kong. Authorities highlighted that fraudulent schemes often misuse terms like “stablecoins” and “digital assets” to lure investors into illegal activities, including fraud, pyramid schemes, and money laundering.
The Shenzhen notice pointed to specific cases, such as a June 30 Weibo post by JD.com, which debunked fake promotions of a “JD stablecoin.” These scams exploit the perceived stability of tokens like Tether (USDT) and USD Coin (USDC), giving investors a false sense of security. The Shenzhen alert follows reports of a massive scam involving the “Xinkangjia” platform, which collapsed in June, defrauding 2 million victims of 13 billion yuan. Such incidents underscore the risks of unregulated digital assets in China, where crypto trading remains heavily restricted.
Shenzhen officials urged residents to report suspicious schemes, emphasizing that stablecoins are often used in unauthorized projects disguised as blockchain innovations. This warning aligns with China’s broader crackdown on crypto, even as the People’s Bank of China acknowledges stablecoins’ transformative potential for global payments. Pan Gongsheng, the central bank governor, recently noted their impact, but China’s focus remains on its digital yuan, which offers centralized control unlike decentralized stablecoins.
In contrast, Hong Kong’s upcoming stablecoin licensing regime, set to launch on August 1, highlights a regional divergence. While Hong Kong embraces regulated stablecoins, Shenzhen’s caution reflects China’s skepticism toward decentralized assets. The task force’s advisory aims to protect public financial security but may also dampen legitimate stablecoin exploration in mainland China. As global stablecoin adoption grows, China faces the challenge of balancing innovation with regulatory oversight to prevent further scams while advancing its digital currency ambitions.
