Hong Kong Stablecoin Plans Halted as Beijing Raises Concerns

October 19, 2025 –Major Chinese tech giants, including Ant Group and JD.com, have reportedly suspended their Hong Kong stablecoin plans after the People’s Bank of China and the Cyberspace Administration of China raised concerns over private firms issuing digital currencies.

Beijing’s Oversight Cools Hong Kong Stablecoin Ambitions

Officials from the PBoC and CAC reportedly intervened as Hong Kong’s stablecoin pilot attracted major mainland technology firms. Regulators emphasized the need to protect “monetary sovereignty,” arguing that stablecoins tied to fiat currencies or corporate reserves could undermine state control.

A source cited by the Financial Times said, “The real concern is who holds the right of coinage the central bank or private companies?” The intervention follows a similar pattern seen in Beijing’s tighter grip on tokenization projects earlier this year.

Hong Kong Stablecoin Framework Faces Delays

Hong Kong’s stablecoin licensing regime, introduced in August, was designed to attract innovation and investment. Initially, it was viewed as a potential bridge for renminbi-pegged digital assets and cross-border payment tools.

However, regulatory uncertainty has cooled enthusiasm. Ye Zhiheng, executive director of the Hong Kong Securities and Futures Commission (SFC), recently warned that the framework increased fraud risk and market instability.

Several local firms that registered early under the program posted double-digit losses after the new rules took effect, reflecting declining confidence among investors.