The curtain is rising on stablecoin regulation. Over the past two weeks, the crypto market has experienced a quiet “policy earthquake”—two core Chinese-speaking markets have almost simultaneously tightened their stance on stablecoins.

Let’s first look at mainland China. There’s a recent regulatory move worth noting: for the first time, stablecoins have been explicitly classified as “a form of virtual currency.” What does this mean? In short, the full set of previous bans on virtual currencies now also applies to stablecoins. Risk prevention, cracking down on illegal transactions, protecting the safety of funds—these familiar phrases signal a renewed affirmation of the regulatory position. As for the often-circulated figures online like “over 300 cases solved, 4.6 billion intercepted,” no confirmation has been given through official channels.

Now let’s shift our focus to Hong Kong. Here, they’re taking a different approach—compliance-based regulation instead of a blanket ban. The Hong Kong Monetary Authority has introduced a licensing regime for stablecoin issuers, but so far, not a single official license has been granted. Even giants like Tether cannot issue or promote products to the Hong Kong public before obtaining a license. But don’t misunderstand—this isn’t a “delisting order,” but rather a regulatory entry threshold. Existing operators can apply for a license, and there’s a transition period to allow for adjustment.

Two markets, two approaches. One says “not allowed,” the other says “allowed, but you need a license first.” What does this divergence mean for the market? With the world’s largest stablecoins restricted in core regions, will this force the industry to reshuffle at a faster pace? Could Hong Kong’s “licensed operation” model become a new channel for institutional capital to enter?

Many are watching and waiting, but one thing is certain: the era of wild growth is over. From now on, it’s about who can adapt to the rules.