Overview

• On July 11, the Shanghai State-owned Assets Supervision and Administration Commission convened about 60 officials to review strategic responses to stablecoins and other digital assets, marking the first such policy dialogue since China’s 2021 crypto ban.
• The regulator instructed state-owned enterprises to deepen research on digital currencies and pilot blockchain applications in cross-border trade, supply chain finance and asset tokenization.
• A Guotai Haitong Securities expert at the meeting analyzed global regulatory frameworks and offered policy recommendations for digital currency development.
• JD.com and Ant Group are lobbying the People’s Bank of China for approval of yuan-pegged stablecoins and preparing applications under Hong Kong’s licensing regime effective August 1.
• People’s Bank of China Governor Pan Gongsheng has warned that the rapid expansion of digital currencies presents significant challenges to financial regulation and system stability.