China stop stablecoin research for their latest crypto crackdown
China regulators don tok broker dem an think tank make dem comot stablecoin seminar dem an research for late July an early August, say e get fraud risk. Dis action na start for stablecoin crackdown an protection for investors. E follow Beijing mixed tori dem about crypto policy, wit new stablecoin rules an Hong Kong put as digital asset hub. Even tho China ban cryptocurrency transaction inside di country, mainland OTC trading hit $75 billion for di first nine months of 2024, Chainalysis yarn. Government dem warn say no make person dey do illegal fund waka wit virtual currency an stablecoin for Beijing, Suzhou, an Zhejiang to stop people follow crowd. Some talk say China dey plan make Bitcoin reserve. Traders suppose dey look how law fit tight well well cause dis one fit change how market for di region go be.
Bearish
Di stablecoin crackdown and wider crypto bans dey signal sey regulatory risk don rise for China. For short term, dem restrictions wey dem put for stablecoin research and seminar fit reduce market liquidity and investor confidence, wey fit cause stablecoin and crypto trading volume to fall. Warnings wey dem dey give about illegal fundraising dey tight operation environment further. Even though reports about strategic Bitcoin reserve fit provide long term support for BTC, the immediate impact na negative because traders fit reduce their exposure because of uncertainty. Overall, dis kain news bad for stablecoins and the wider Chinese crypto market.