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Chinese regulators ordered Ant Group and JD.com to pause their Hong Kong stablecoin launches.
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Authorities fear private stablecoins could compete with China’s digital yuan.
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The move reflects Beijing’s cautious stance on private digital currency issuance.
Regulators Step In
Several Chinese tech giants have halted plans to issue stablecoins in Hong Kong after Beijing’s regulators intervened, according to the Financial Times. Ant Group, Alibaba’s fintech affiliate, and retailer JD.com were both preparing to launch yuan-pegged stablecoins under Hong Kong’s new licensing regime.
However, sources told the FT that the People’s Bank of China and the Cyberspace Administration ordered the companies to stop, citing risks to financial stability.
China’s Preference for Centralized Control
Officials reportedly view privately issued stablecoins as potential threats to the state-backed e-CNY digital currency, which has struggled to gain adoption. PBoC Governor Zhou Xiaochuan expressed concerns about excessive issuance and leverage from private token issuers during a financial forum in August.
Impact on Hong Kong’s Crypto Ambitions
Hong Kong has encouraged crypto innovation and positioned itself as a regional hub for tokenization and digital finance. But mainland China’s tightening stance could slow stablecoin and RWA tokenization projects in the city, with regulators already advising brokers to pause related initiatives.
