Overview

• Chinese financial regulators instructed brokerages and think tanks to halt all public stablecoin events and research amid fears of fraud and money-laundering risks.
• Insiders report that private pilots of a renminbi-pegged stablecoin are proceeding as Beijing seeks to boost the yuan’s global role and challenge the US dollar.
• Hong Kong’s new Stablecoin Ordinance took effect on August 1, imposing full-reserve, anti-money-laundering and capital requirements on issuers.
• The Hong Kong Monetary Authority has capped initial licenses and expects only one of China’s four major state-owned banks to secure approval in its first phase.
• Industry experts warn that the decentralized nature of stablecoin technology limits central authorities’ ability to fully monitor and control token flows.