Beware! Stablecoin Threats in China and Crypto Scams in Korea

Jakarta, Pintu News – In recent developments in Asia Pacific, issues related to cryptocurrencies have been gaining traction. From a strong warning by the former Governor of the People’s Bank of China against the use of stablecoins, to a spike in crypto fraud cases in South Korea, these events provide an important snapshot of the challenges and risks that exist within the crypto ecosystem.

Warning from Former PBoC Governor

Zhou Xiaochuan, former Governor of the People’s Bank of China (PBoC), recently issued a serious warning against the adoption of stablecoins in China. Through an analysis published by think tank CF40, Zhou highlighted several risks that could threaten financial stability. The main concern expressed was the potential for currency “over-issuance”, where stablecoin operators do not have 100% actual reserves when issuing stablecoins.

Zhou also emphasized the high leverage effect that could expand the multiplier effect of monetary derivatives during the circulation of stablecoins. His criticism not only focused on the perceived inadequate regulatory frameworks in the United States and Hong Kong, but also on the potential overuse of stablecoins in asset speculation that could fuel fraud and financial instability.

Also Read: 3 Reasons Why Altcoins Are Predicted By Analysts And Tapiero To Explode And Surpass Bitcoin (BTC)

Spike in Crypto Fraud in South Korea

In South Korea, voice phishing scams using crypto have increased dramatically. Police data shows that there were 420 cases of crypto-related scams from January to July 2025, a 6.6-fold increase over the same period the previous year.

The scammers usually pose as prosecutors or financial officials, claiming that the victim’s account has been compromised. Victims are asked to buy hundreds of millions of won worth of crypto for “asset verification”. In some recent cases, victims lost up to 190 million won in Bitcoin (BTC) and Tether (USDT) transfers. This phenomenon shows how important it is to be aware and cautious in crypto transactions.

Implications for the Global Market

Zhou’s warning and the rise of fraud in South Korea provide important lessons about the risks associated with crypto. These issues not only impact local markets, but also have the potential to have a wider impact on the trust and stability of the global crypto market. Investors and users around the world need to pay attention to these developments and take precautionary measures to protect their assets.

The importance of strong regulation and transparency from crypto operators is becoming increasingly clear in preventing risks and protecting users. International cooperation and information exchange between countries will also be key in addressing these challenges.

Conclusion

These cases in China and South Korea show that the challenges and risks in crypto are still very real. Education, proper regulation and vigilance are key to navigating this dynamic crypto market. Stakeholders must work together to ensure that these technological developments can proceed safely and responsibly.

Also Read: 3 Reasons Why Tom Lee Predicts Ethereum (ETH) Could Touch IDR196 Million by the End of 2025

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Reference

• BeInCrypto. China’s Stablecoin Warnings, Korea’s Crypto Scams, and More. Accessed on August 29, 2025