Bloomberg: China demands local brokerages to stop promoting stablecoins to prevent market overheating and potential risks.

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[Bloomberg: China Requires Local Brokers to Stop Promoting Stablecoins to Prevent Market Overheating and Potential Risks] On August 8, news from Bloomberg cited sources saying that China has required local brokers and other institutions to stop publishing 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 brokers and think tanks received guidance from financial regulatory authorities, demanding the cancellation of related activities and halting the dissemination of research content regarding 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 usually backed by cash-like assets and issued by private companies, often pegged to the US dollar and supported by assets such as US short-term Treasury bonds. The global supply of stablecoins is expected to reach $3.7 trillion by 2030.

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