China mocks US crypto policies, Telegram’s new dark markets: Asia Express

China airs 30-minute US crypto satire

CCTV, China’s state broadcasting mouthpiece, aired a half-hour special on cryptocurrencies and how the US is attempting to solidify dollar dominance with stablecoins.

The July 27 broadcast framed the new US stablecoin legislation GENIUS Act, as a geopolitical turning point. CCTV pinpointed that the new rules explicitly ban a Federal Reserve–issued central bank digital currency (CBCD) while allowing stablecoins to export US debt in digital form.

The broadcaster said stablecoins backed by US Treasury bonds represent the third phase of dollar hegemony after Bretton Woods gold and Middle Eastern oil. In this model, crypto users across the globe become indirect holders of US government debt, while stablecoin issuers emerge as the next generation of bond superbuyers. The program warned that this digital infrastructure could displace weaker currencies.

The program tied the legislation to Trump and spent a portion of its presentation dissecting his conflict with Fed Chair Jerome Powell, painting a dysfunctional scene while portraying cryptocurrencies as tools of elite interests. CCTV cited a Reuters article to claim that crypto businesses financed the president’s family’s debt repayment for a Wall Street office building.

The actual Reuters report did not single out crypto. It reported: “The president’s golf and resort businesses have performed well in recent years, throwing off a lot of cash. In recent months, his family business has struck lucrative licensing deals with developers and opened multiple beachheads in cryptocurrencies, which have yielded hundreds of millions of dollars in fees and other revenue.”

A chunk of the TV special focused on crypto crime, such as social engineering scams, impersonation attacks and high-profile digital heists. These were presented as symptoms of lax oversight and deregulation. China is also facing a major $1.8 billion crypto scam scandal, which was not discussed in the broadcast.

The special also omitted China’s CBDC project, its crypto bans or Hong Kong’s own stablecoin regulation, which is set to take effect on Aug. 1.

In a separate report on Thursday, state-backed outlet National Business Daily published an interview with Song Ke, the executive dean of social sciences at Renmin University. Ke said that China’s CBDC and Hong Kong dollar-backed stablecoins can reduce dollar reliance. He added that the new rules can open paths for digital yuan integration into the stablecoin economy.

Tudou and Xinbi take fallen Huione’s place as darknet market leaders

Tudou Guarantee and Xinbi Guarantee have emerged as the new leaders among Southeast Asia’s illicit crypto escrow market, following Telegram’s May takedown of Huione Guarantee channels. 

The US Treasury’s Financial Crimes Enforcement Network (FinCEN) labeled Huione Group, which allegedly operated Telegram illicit market Huione Guarantee and crypto payment platform Huione Pay, a primary money laundering concern by the US Treasury’s Financial Crimes Enforcement Network (FinCEN) in May. The operation was found to be tied to Cambodia’s ruling Hun family by blockchain analytics platform Elliptic in 2024.

TRM Labs said in a Wednesday report that the shake-up did not dismantle the region’s underground financial system, but accelerated a shift. Tudou’s daily incoming transaction volume surged nearly 70-fold since May 11, when Huione Guarantee announced it would suspend its escrow operations. TRM analysts found vendors formerly active on Huione are now operating on Tudou using the same wallet infrastructure.

Xinbi Guarantee also recovered rapidly. After being briefly removed from Telegram, it returned under the same ID and saw a 90% increase in daily inflows. 

Meanwhile, Huione Pay, Huione’s payment arm, remains active. After the ban, its average daily transaction volume rose by 50% before stabilizing about 10% above previous levels. TRM’s analysis shows overlapping infrastructure between Huione Pay and Huione Guarantee, with historical flows from Huione Pay withdrawal wallets into Huione Guarantee’s deposit wallets.

TRM said that the crackdown triggered “fragmentation, not collapse.” Despite sanctions and platform bans, Huione and its network continue operating through Tudou and other affiliates, distributing risk while maintaining operations. Meanwhile, Xinbi appears to be expanding and benefiting as an alternative platform following Huione’s shutdown.