Hong Kong stablecoin plans paused after Beijing regulators urged Chinese firms like Ant Group and JD.com to stop private currency projects.
Author: Akshat Thakur
Published On: Sun, 19 Oct 2025 12:58:22 GMT
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.
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’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.
The decision to halt Hong Kong stablecoin plans follows Beijing’s broader retreat from offshore tokenization efforts. Last month, China’s securities watchdog instructed several brokerages to pause real-world asset (RWA) tokenization activities in Hong Kong, signaling concern over unregulated blockchain experiments.
Despite these restrictions, financial institutions such as CMB International Asset Management continue exploring limited projects, including the tokenization of a $3.8 billion fund on BNB Chain, though such initiatives now face heavier scrutiny.
Real voices. Real reactions.
Plans to launch a Hong Kong stablecoin have hit a wall after Beijing intervened, with the People’s Bank of China warning local officials about the risks of private stablecoin issuance. Behind closed doors, priorities shifted. https://t.co/8UqgKoMJ3C
JUST IN: Ant Group and https://t.co/yYKiA2lLo8 have halted their Hong Kong stablecoin plans after being directed by Chinese regulators, including the PBOC and CAC, to pause related projects. Hong Kong’s Stablecoin Bill, effective August 1, has already drawn 36 license https://t.co/9KDUWG5QwF
Chinese tech giants pause stablecoin plans after Beijing steps in https://t.co/Q9JzSDzqCC
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