Two of China’s largest technology firms, Ant Group and JD.com, have suspended plans to launch stablecoins in Hong Kong after direct intervention from Beijing’s financial regulators, according to the Financial Times.
Both companies had been preparing to apply for Hong Kong’s new stablecoin issuer licenses, introduced earlier this year as part of the city’s effort to build a regulated digital asset market.
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However, sources familiar with the matter said that the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the firms to halt their initiatives.
Regulators warn that privately issued stablecoins could interfere with China’s monetary policy and compete with the country’s central bank’s digital yuan (e-CNY).
Why Beijing Stepped In
Privately issued stablecoins are digital currencies created by companies and pegged to real-world fiat currencies, such as the U.S. dollar or the Chinese yuan.
While they can make payments faster and cross-border transactions more efficient, their widespread use could weaken a central bank’s control over money supply, interest rates, and inflation.
When large volumes of funds circulate through private blockchain networks, the state loses visibility over capital flows.
A Split Approach to Crypto
The intervention underscores China’s cautious approach to digital assets, even as Hong Kong pursues a more open framework for Web3 and blockchain innovation.
Mainland China maintains a sweeping ban on cryptocurrency trading and exchange activity, while Hong Kong’s “Stablecoins Bill,” passed in May 2025, created a licensing regime for fiat-pegged stablecoin issuers to strengthen the city’s role as a digital finance hub.
Hong Kong’s financial regulators have not commented publicly on the reports. Both Ant Group and JD.com also declined to comment.
The decision comes amid a wider global push to regulate stablecoins, as jurisdictions including the United States, European Union, and Japan work to establish clear licensing and reserve standards for fiat-backed digital tokens.
Why This Matters
The decision highlights the challenges governments face in balancing innovation and regulation in the emerging digital asset economy.
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People Also Ask:
Companies issue stablecoins to facilitate faster payments, enable cross-border transactions, or power blockchain-based applications and digital finance ecosystems.
Widespread use of stablecoins can reduce a central bank’s control over money supply, interest rates, and inflation. Large volumes of funds circulating privately can limit government oversight of capital flows.
Mainland China maintains a strict ban on cryptocurrency trading and privately issued stablecoins. Hong Kong, in contrast, has established a licensing framework for fiat-pegged stablecoins under its 2025 “Stablecoins Bill.”
