The post Shenzhen Warns of Stablecoin Scams as Neighboring Hong Kong Pushes Ahead appeared on BitcoinEthereumNews.com.

In brief Shenzhen officials have urged the public to report scams tied to stablecoins. The warning comes a week after e-commerce giant JD.com warned of fake coin promotions. Neighboring Hong Kong is expected to launch a new stablecoin licensing regime on August 1. Authorities in Shenzhen issued a public alert Monday, warning residents to avoid scams involving stablecoins, citing an uptick in illegal fundraising and fraud linked to crypto. “Recently, stablecoins have received widespread attention from the market,” the city’s illegal financial activities task force said. “Monitoring found that some illegal institutions use ‘financial innovation’ and ‘digital assets’ as gimmicks and take advantage of the public’s lack of understanding of stablecoins.” The task force warned that those activities are tied to illegal fundraising, gambling, fraud, pyramid schemes, and money laundering. The public was encouraged to report such incidents to authorities, with rewards available for tips. Despite official bans limiting access to crypto, trading remains widespread in China. It also remains a significant vector for scams targeting both mainland citizens and victims abroad. Chinese organized crime groups also run scamming syndicates across Southeast Asia. The Shenzhen alert follows a June 30 post on Weibo by Chinese e-commerce giant JD.com, warning users about fake promotions of a “JD stablecoin.” It’s unclear if the Shenzhen alert is specifically linked to that outcome.  The company, which is seeking licenses to issue stablecoins abroad for business-to-business payments, clarified that no official coins have been released. Any claims to the contrary, it said, are fraudulent. On Monday, the Hong Kong Economic Journal also published an article about an alleged Ponzi scheme dubbed Xin Kang Jia, which masqueraded as a stablecoin investment platform, among other things. It has attracted two million victims since its founding in the Chinese province of Guizhou in 2021, resulting in 13 billion…

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Filed under: News - @ July 8, 2025 4:29 pm