Shenzhen officials have alerted the public to an increase in scams tied to stablecoins, warning of illegal fundraising, fraud, and money laundering. This follows a similar warning from JD.com about fake stablecoin promotions. In contrast, neighboring Hong Kong is preparing to launch a regulatory framework for stablecoins on August 1, allowing only licensed firms to issue fiat-referenced tokens. Financial Secretary Paul Chan highlighted stablecoins’ potential in cross-border payments, while experts note Hong Kong’s progressive stance compared to other jurisdictions. Despite China’s crypto bans, scams remain prevalent, with organized crime groups exploiting victims domestically and abroad.
about Shenzhen Warns of Stablecoin Scams as Hong Kong Prepares New Rules