A Solana-themed event in southern China that was disrupted after a local politics investigation has raised concerns in the country’s cryptocurrency community amid fresh warnings from Beijing about the risks of stablecoins, even though organizers attributed the disruption to overcapacity.
Chinese blockchain community Solana said on its official social media account that the Solana Accelerate APAC event in Shenzhen, held on Tuesday afternoon, was “exceptionally popular” and attendance far exceeded expectations.
“A few friends who were denied entry reported the event, prompting local police to conduct an investigation at the scene,” the post said. Organizers confirmed the venue’s overcapacity problem and decided to cancel a final hackathon presentation session “for public safety.”
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Shenzhen police did not disclose any information about the investigation.
Although the incident was attributed to overcrowding rather than the event’s theme, it has sparked anxiety among industry players who fear a new crackdown on cryptocurrencies in mainland China.
Their biggest concerns reflect the current uncertainties regarding digital asset policies.
Pan Gongsheng, governor of the People’s Bank of China. Photo: Xinhua alt=Pan Gongsheng, governor of the People’s Bank of China. Photo: Xinhua>
Earlier this week, the country’s central bank highlighted the risks associated with stablecoins (cryptocurrencies pegged to another stable asset, such as a fiat currency) despite growing discussions about digital assets among Chinese officials and local governments.
Pan Gongsheng, governor of the People’s Bank of China, said Monday at the Financial Street Forum in Beijing that stablecoins are still in their early stages of development and do not meet basic requirements such as customer identification and anti-money laundering measures.
He also said China would continue to crack down on digital asset companies and speculative activities while closely monitoring the development of overseas stablecoins.
Launched in 2017, the Solana blockchain network has become a major competitor to Ethereum. The market capitalization of the native Solana token is approximately $107 billion.
Last week, Hong Kong approved its first exchange-traded fund (ETF) tracking Solana, making it the third cryptocurrency after bitcoin and ether that the city’s ETFs can invest in directly.