Bloomberg: China requires local brokers to stop promoting stablecoins to prevent market overheating and potential risks.

[Bloomberg: China Requires Local Securities Firms to Stop Promoting Stablecoins to Prevent Market Overheating and Potential Risks] On August 8, Bloomberg cited sources familiar with the matter stating that China has requested local securities firms and other institutions to stop releasing research reports related to stablecoins or holding promotional seminars to prevent market overheating and control potential risks. Sources revealed that in late July and early August, some large securities firms and think tanks received guidance from financial regulatory authorities, requesting the cancellation of related activities and the cessation of disseminating research content on stablecoins. Recently, regulatory agencies in Beijing, Suzhou, and Zhejiang have issued warnings about the risks of illegal fundraising related to virtual currencies and stablecoins. Stablecoins are typically backed by cash-like assets, issued by private companies, and are often pegged to the US dollar and supported by assets such as US Treasury bills. The global supply of stablecoins is expected to reach $3.7 trillion by 2030.