Chinese regulators have requested local institutions to suspend stablecoin promotional activities.

According to Gate News bot, citing informed sources from Bloomberg, Chinese regulatory authorities have requested domestic brokerages and other relevant institutions to suspend the publication of stablecoin research reports and related promotional activities to prevent market overheating and manage potential risks.

Sources say that from late July to early August, several large brokerage firms and think tanks received guidance from financial regulatory authorities to cancel activities related to stablecoin and stop disseminating related research content.

At the same time, regulatory agencies in Beijing, Suzhou, Zhejiang, and other areas have recently issued warnings about the risks of illegal fundraising related to virtual currencies and stablecoins.

Stablecoins are usually issued by private companies, often pegged to the US dollar, and are backed by cash-like assets such as US short-term government bonds. It is expected that by 2030, the global supply of stablecoins may reach $3.7 trillion.