Beijing Warns Against Illegal Stablecoin Fundraising

The Haidian District Local Financial Supervision Administration in Beijing has issued a warning against illegal activities involving stablecoins and digital assets, underscoring potential economic and financial disruptions.

Regulatory actions target illegal fundraising and market speculation, yet no immediate asset seizures have occurred, reflecting China’s ongoing tight crypto regulations contrasting with Hong Kong’s recent licensing initiatives.

Beijing Cracks Down on Unlawful Stablecoin Fundraising

The Haidian District Local Financial Supervision Administration of Beijing issued a formal notice targeting illegal fundraising through stablecoins. This warns the public against engaging with entities promoting “financial innovation” or “digital assets” for funding activities.

The notice emphasizes that only legally authorized organizations can raise funds, cautioning against engaging with unauthorized entities. The warning targets stablecoins and other digital currencies involved in unlawful fundraising.

While official statements from key figures are absent, previous national regulatory efforts against crypto-related fundraising highlight the seriousness of this warning. The notice has drawn attention from market observers concerned about regulatory impacts on stablecoin transactions.

China’s Historical and Ongoing Regulatory Stance on Crypto

Did you know? China’s regulatory clampdowns on crypto fundraising date back to 2017, reflecting a consistent stance against illicit crypto activities.

As of July 25, 2025, Tether USDt (USDT) maintains a price of $1.00, a market cap of formatNumber(162654382929), formatNumber(24.00), and a 24-hour trading volume of formatNumber(143128838611) on CoinMarketCap. Recent price changes show stability, with minor fluctuations in short-term data.

Insights from the Coincu research team suggest that stricter regulatory measures in China might influence stablecoin usage globally. Potential financial implications could arise if similar warnings extend to wider digital asset markets.

Eddie Yue, Chief Executive, Hong Kong Monetary Authority, remarked, “From 1 August 2025, we will begin accepting licence applications for stablecoin issuers under a robust regulatory regime,” reinforcing differentiation from unlicensed activities on the mainland.