Today in crypto, China issued a ban on unapproved stablecoin and tokenized real-world assets, Trend Research unloaded over 400,000 ETH to repay loans, and market sentiment dived to multi-year lows as Bitcoin sank.
China bans unapproved stablecoins and RWA issuance
The People’s Bank of China, together with seven other regulatory bodies, issued a joint statement banning the unapproved issuance of yuan-pegged stablecoins and tokenized real-world assets (RWAs) by both domestic and foreign companies.
According to the announcement, no entity or individual, whether inside or outside China, may create or issue Renminbi-linked stablecoins without explicit approval from regulators. That includes offshore versions tied to the yuan, closing a loophole that some had hoped might allow crypto activity to persist around China’s borders.
The move also extends long-standing restrictions on cryptocurrencies by formally folding RWA tokenization into China’s risk framework. Authorities view converting real assets into tradable tokens without approval as potentially illegal financial activity.
The regulators argue this step is part of a broader strategy to keep speculative digital assets outside China’s formal financial system while promoting the use of the state’s digital yuan (e-CNY).
Trend Research dumps over 400K ETH as liquidation risk rises
Ethereum investment vehicle Trend Research continued to reduce its Ether exposure, as the latest market crash pushed the treasury company to sell off its assets to pay back loans.
It held about 651,170 Ether (ETH) in the form of Aave Ethereum wrapped Ether (AETHWETH) on Sunday. That amount dropped by 404,090, to about 247,080 on Friday, at the time of writing.
Trend Research transferred 411,075 ETH to cryptocurrency exchange Binance since the beginning of the month, according to blockchain data platform Arkham.
The transfers occurred as ETH price dropped almost 30% in the past week, to as low as $1,748 on Friday, according to CoinMarketCap. It traded at $1,967 at the time of writing.
Trend Research has been tied to Jack Yi, founder of Hong Kong-based crypto venture firm Liquid Capital. Yi accumulated his Ethereum investment company’s holdings by purchasing ETH at an exchange, using that as collateral on Aave to borrow stablecoins, then using those funds to acquire more ETH.
Crypto sentiment hits 2022 lows as Bitcoin crashes to $60,000
Crypto market sentiment slumped to its lowest level in over three and a half years on Friday, returning to levels last seen during the massive Terra blockchain collapse, as Bitcoin (BTC) hit a 24-hour low of $60,000.
The Crypto Fear & Greed Index fell to a score of 9 out of 100 on Friday, its lowest point since June 2022, when sentiment fell alongside the market in the wake of the collapse of the Terra blockchain a month earlier.
It came as Bitcoin had fallen around 13% over the past 24 hours and had lost over $10,000, its largest in a day since mid-2022.
Its price hit a low of $60,000 on Coinbase late on Thursday, falling by over 50% from its peak of $126,000 in early October.
CoinEx Research chief analyst Jeff Ko told Cointelegraph that Bitcoin’s drawdown comes alongside a selloff in US tech stocks, “where stretched valuations and lingering concerns around an artificial intelligence-driven bubble have long been highlighted by the market.”
