China Poly Group Denies Hong Kong Stablecoin Involvement

China Poly Group announced that neither it nor its subsidiaries are involved with ‘Hong Kong Poly Stablecoin’ or similarly named entities, according to ChainCatcher and Sina Finance.

This clarification highlights China’s continued distancing of state-owned enterprises from private crypto activities, reflecting broader policy shifts favoring government-regulated digital assets like the digital RMB.

China Poly Group Clarifies Stance on Hong Kong Stablecoins

China Poly Group has issued a statement disassociating itself from online narratives concerning Hong Kong-based stablecoins. The company confirmed no partnerships or affiliations with the entities “Poly Digital Industry Group Co., Ltd.,” “Poly Digital Asset Co., Ltd.,” and “Poly Digital Asset Issuance Co., Ltd.,” and emphasized vigilance in verifying information and reporting suspicious activities.

The immediate market implications include a bolstering of policies that restrict private sector movements in the crypto sphere. This move continues the trend of withdrawing state-owned enterprises from such ventures, aiming to centralize digital currency activities under government control.

Poly Group and its subsidiaries have not organized or participated in any activities or businesses related to Hong Kong stablecoins or stablecoin funds… These Hong Kong-registered companies have no equity or affiliation with Poly Group and its subsidiaries, nor do they have any investment, cooperation, or business relationships. All their actions are unrelated to Poly Group. Please remain vigilant and report illegal activities to the authorities as soon as possible. — ChainCatcher

State-Backed Digital Currencies Gain Over Private Stablecoins

Did you know? China’s approach to stablecoins often aligns with broader regulatory actions, similar to the suspensions encountered by private entities like Ant Group, reflecting strict oversight in digital currency domains.

Ethereum (ETH) recently registered a price of $3,957.50 with a market cap of 477,663,063,175.00. Its dominance stands at 12.67%, according to CoinMarketCap. In the last 24 hours, the trading volume dropped by 54.71%, while the price saw a modest increase of 0.72%.

Experts from Coincu emphasize the potential regulatory shift as government-backed digital currencies gain prevalence. Historical data indicates a trend towards favoring state-sanctioned digital solutions over private stablecoins, reinforcing digital RMB prospects.