Chinese technology giants Ant Group and JD.com have suspended their plans to issue stablecoins in Hong Kong after Beijing regulators raised concerns about privately issued digital currencies.
According to the Financial Times, the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed these companies to pause their stablecoin-related initiatives. One source familiar with the matter said, “The real issue is who holds the ultimate right of coinage — the central bank or private companies?”
Both firms had previously expressed interest in joining Hong Kong’s pilot stablecoin program or launching tokenized financial products such as digital bonds.
However, Hong Kong’s push for stablecoin development has hit a snag. Officials from the Securities and Futures Commission (SFC) warned that the city’s new regulatory framework could increase the risk of fraud.
Meanwhile, reports have also surfaced that Chinese brokerages were ordered to halt their asset tokenization activities in Hong Kong — a sign of Beijing’s growing caution toward the rapid expansion of offshore crypto ventures.
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