Stablecoin illegal fundraising warning

Key Points:* Shenzhen warns against illegal fundraising using stablecoins, citing market disruption risks.

• Public urged to enhance investment awareness and report illegal activities.
• Similar crackdowns coincide with past Chinese crypto bans and FATF warnings. In Shenzhen, the Special Task Force Office for the Prevention and Control of Illegal Financial Activities has issued a warning titled “Beware of Risks of Illegal Fundraising in the Name of Stablecoins and Other Instruments.”

The task force’s alert indicates the misuse of stablecoins for unlawful fundraising, which poses risks to the financial system. Authorities advise the public to remain cautious and informed about investment opportunities.

Shenzhen Targets Stablecoin Risks in Financial Systems

The Shenzhen task force flagged illegal fundraising using stablecoins as a risk, citing impacts on economic order and public safety. The notice urges people to report schemes involving virtual currencies and avoid extravagant promises.

Stablecoins play a central role in these schemes, with regulators concerned about their potential use in illegal activities. Authorities stress self-awareness among investors to curb the proliferation of scams and uphold lawful financial activities.

Reactions include broader industry calls for regulation. Experts underline the importance of distinguishing genuine innovations from criminal activities. Despite no direct statements from ChainCatcher, the industry’s focus remains on aligning with international norms. Jordan Wain, Policy Adviser at Chainalysis, emphasized the significance of stablecoins in illicit activities: “Stablecoins are still the most dominant type of on-chain crypto crime,” advocating for better regulatory frameworks to mitigate risks.

China’s Crypto Regulation History Influences Current Measures

Did you know? Since 2013, China’s regulatory stance has evolved from Bitcoin service bans to full ownership prohibition in 2025. This reflects ongoing regulatory caution toward digital assets.

Tether (USDT) trades at $1.00 with a market cap of 158,636,675,803. Data from CoinMarketCap highlights a 24-hour trading volume of 53,177,816,738, signaling liquidity amidst regulatory warnings focused on stablecoins. You can find more trading data at Fameex Exchange Overview and Trading Information.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 03:50 UTC on July 7, 2025. Source: CoinMarketCap Experts at Coincu emphasize a need for balanced regulation to prevent illicit use while supporting innovation. Insights suggest marrying robust compliance with technological progress to stabilize market dynamics and boost investor trust.

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