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This Week’s Highlights:
- China’s central bank renews crackdown on stablecoins and crypto, intensifying risk for issuance and adoption.
- Hong Kong–listed stablecoin-related stocks slump after regulatory warnings from Beijing.
- The Bangko Sentral ng Pilipinas (BSP) remains cautious about private-sector stablecoin proposals, delaying adoption.
China Tightens Stance on Stablecoins, Regulators Vow Crackdown
China’s central bank (the People's Bank of China, PBOC) has reiterated its hardline policy on virtual currencies, including stablecoins. Officials stated that virtual currencies lack legal tender status under Chinese law, and declared related activities illegal financial operations. Specific concerns were raised about stablecoins’ failure to meet essential standards such as customer identification and anti-money laundering compliance.
The renewed crackdown follows an uptick in crypto speculation and aims to shore up financial stability and oversight. The message sends a clear signal to issuers and investors: private stablecoin issuance for the domestic market remains off-limits. For global stablecoin operators, this heightens regulatory risk for any China-linked issuance or distribution, and underscores the challenges of offering dollar- or foreign-pegged stablecoins to Chinese users without triggering legal enforcement.
Hong Kong Crypto Stocks Plunge After PBOC Alert
Markets responded immediately to China’s crackdown: shares of Hong Kong-listed crypto and stablecoin-related firms plunged. The stock of Yunfeng Financial Group tumbled by nearly 10%, while Bright Smart Securities and Commodities Group and OSL Group also dropped significantly.
This sell-off reflects how quickly regulatory signals can ripple through financial markets. Despite the launch of a formal stablecoin licensing regime in Hong Kong earlier this year, the crackdown from mainland regulators has fueled uncertainty. For investors and institutions, the instability serves as a reminder that stablecoin ventures linked to or perceived as connected to China still carry substantial geopolitical and regulatory risk, even in jurisdictions with established frameworks.
BSP Maintains Cautious Approach amid Stablecoin Proposals
In the Philippines, the central bank has acknowledged receiving multiple proposals for private-sector stablecoin issuancesm including both peso- and dollar-backed designs. However, the central bank remains cautious, citing concerns over regulatory oversight, reserve backing, and systemic risk.
According to BSP officials, any adoption would require a robust regulatory framework, strong compliance mechanisms, and clear alignment with monetary stability goals. For regional investors and remittance services, this means that stablecoin adoption in the Philippines, and possibly Southeast Asia, may evolve slowly and only under stringent conditions, reinforcing the need for careful stablecoin treasury and risk management planning.
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This Weekly Summary is prepared by brava.finance.
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Brava Finance is a high-yield cash allocation platform that gives professional investors access to blockchain-based stablecoin credit markets. By routing capital into hundreds of secure, collateralised lending pools, Brava delivers automated, transparent, and risk-adjusted yield while users retain full control of their assets through non-custodial smart vaults. Built for capital allocators, Brava combines institutional-grade infrastructure with next-generation financial access.
Disclaimer: Brava Finance does not provide financial advice or guarantee investment performance. Users should assess their own financial circumstances and risk tolerance before using the platform. Brava operates in compliance with applicable regulations and does not manage or hold client funds. Users remain in control of their assets at all times.
Citations:
https://finance.yahoo.com/news/china-making-plans-crack-down-124522381.html
https://bitpinas.com/regulation/bsp-stablecoin-proposal/
