According to the source, the People's Bank of China has warned that global stablecoins may bring risks to the financial system and threaten monetary sovereignty, signaling continued policy caution toward privately issued digital currencies. Source: https://www.reuters.com/world/china/chinas-central-bank-says-global-stablecoins-may-bring-risks-financial-system-2021-07-08/ ; https://www.bis.org/publ/bisbull65.htm In Asia, Singapore’s MAS finalized a regulatory framework for single-currency stablecoins on Aug 15, 2023, and Circle Internet Singapore holds a Major Payment Institution license enabling regulated issuance and redemption—shaping compliant liquidity rails in the region. Source: https://www.mas.gov.sg/news/media-releases/2023/mas-announces-regulatory-framework-for-stablecoins ; https://www.circle.com/en/pressroom/circle-receives-major-payment-institution-license-in-singapore Hong Kong launched a stablecoin issuer sandbox on Mar 12, 2024 and is advancing legislation to regulate fiat-referenced stablecoin issuers; the SFC’s public register shows ongoing VATP applications and approvals including Hash Blockchain Limited (HashKey Exchange) and OSL Digital Securities, evidencing active offshore licensing. Source: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/03/20240312-4/ ; https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/12/20231227-3/ ; https://www.sfc.hk/en/Rules-and-standards/Virtual-asset-service-providers-and-trading-platforms/List-of-virtual-asset-trading-platforms For trading, stablecoins account for the majority of crypto transaction volumes, making these Singapore and Hong Kong policy tracks key catalysts for BTC and ETH liquidity, market depth, and basis during Asia hours. Source: https://www.bis.org/publ/bisbull65.htm ; https://kaiko.com/research

According to the source, Mainland China continues to prohibit crypto trading, exchange intermediation, and token issuance under the Sept 24, 2021 joint notice, keeping onshore liquidity suppressed and enforcement risk elevated for CNY onramps, source: People's Bank of China and multiple ministries, 2021. The PBOC is simultaneously advancing the e-CNY program, underscoring a policy preference for sovereign digital currency over private crypto assets, source: People's Bank of China, 2021 e-CNY white paper. In contrast, Singapore’s MAS issued a stablecoin framework on Aug 15, 2023 requiring high-quality reserves, T+5 redemption, and clear disclosures for SCS pegged to SGD or G10 currencies, providing regulatory clarity for compliant USD- and SGD-pegged stablecoins, source: Monetary Authority of Singapore, 2023 stablecoin framework. Hong Kong’s HKMA launched a stablecoin issuer sandbox in March 2024 and, together with the FSTB, is developing a licensing regime for fiat-referenced stablecoins, laying formal groundwork for regulated issuance and use, source: Hong Kong Monetary Authority, 2024; Financial Services and the Treasury Bureau of Hong Kong, 2024. Japan’s revised Payment Services Act effective June 2023 permits issuance and distribution of stablecoins by banks, trust companies, and certain intermediaries under FSA oversight, enabling onshore yen- and foreign currency-pegged stablecoins, source: Japan Financial Services Agency, 2023 PSA amendments. South Korea’s Virtual Asset User Protection Act effective July 2024 strengthens custody, market abuse, and disclosure rules for exchanges, tightening compliance standards across local venues, source: Financial Services Commission of Korea, 2024. Stablecoins constitute the majority of crypto transaction volume in East Asia, concentrating regional liquidity in major pairs such as USDT and USDC during Asia hours, source: Chainalysis, 2023 Geography of Cryptocurrency Report; CoinGecko, 2024 stablecoin market data. For trading strategy, the divergence implies restricted Mainland CNY onramps but improving regulated rails via Singapore, Hong Kong, and Japan for compliant USDT and USDC flows, requiring venue and token selection aligned with local licensing and redemption rules, source: People's Bank of China, 2021; Monetary Authority of Singapore, 2023; Hong Kong Monetary Authority, 2024; Japan Financial Services Agency, 2023.

According to the source, a compliant, citation-backed trading summary cannot be produced because the only provided source is a competing crypto media outlet, which cannot be cited under the stated rules. To proceed, please share at least one primary source such as: Monetary Authority of Singapore’s stablecoin regulatory framework (official MAS release), Hong Kong Monetary Authority stablecoin consultation conclusions or sandbox updates (official HKMA materials), Japan Financial Services Agency Payment Services Act stablecoin rules effective June 2023 (official FSA notice), or company press releases from Tether or Circle. With an acceptable source, the analysis will focus on verified impacts to USDT and USDC liquidity, regional on and off ramps, issuance and redemption frictions, and Asia trading hour flows, all with direct citations to the provided documents.