SHANGHAI, CN – According to a report from Chinese newswire PANews, police in Shanghai have apprehended the team responsible for the creation of CNHC, a stablecoin linked to the value of the offshore yuan, and HKDC, a stablecoin tied to the Hong Kong dollar.

The Trust Reserve team was taken into custody on May 29. PANews further revealed that a judicial seizure notice was discovered on the door of the company's office, suggesting a significant escalation in the authorities' actions against the team. 

China's stringent bans on crypto trading, mining, and bank transactions, leave the future of CNHC and HKDC uncertain. In contrast, Hong Kong has maintained a more open stance towards the cryptocurrency industry. In February this year, the Hong Kong government released proposed rules outlining regulatory frameworks for crypto trading platforms.