Chinese tech giants Ant Group and JD.com have paused their plans to issue stablecoins in Hong Kong after regulators in Beijing raised concerns. The People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed these firms to halt their initiatives. This move highlights Beijing’s growing apprehension over digital currencies issued by private companies, especially in territories like Hong Kong.
Beijing’s Control Over Currency Issuance
The main issue is about who controls the issuance of digital money. One insider told the Financial Times, “The real regulatory concern is, who has the ultimate right of coinage the central bank or any private companies on the market?” Beijing fears private stablecoins could undermine the state-controlled digital yuan, e-CNY. This concern reflects China’s strong emphasis on maintaining monetary sovereignty and state control over financial technologies.
Hong Kong launched its stablecoin licensing regime in August 2025 to encourage financial innovation. The city’s plan included licensing fiat-pegged stablecoins to expand the use of the renminbi and develop a crypto hub.
By September, around 77 firms showed interest, including mainland-linked businesses. However, warnings about potential fraud risks surfaced soon after the program began. Ye Zhiheng from the Hong Kong Securities and Futures Commission (SFC) cautioned that the new rules might increase fraud, coinciding with significant losses by stablecoin companies on the program’s start date.
Crackdown on Tokenization in Hong Kong
The crackdown goes beyond stablecoins. China’s securities regulator recently asked several local brokerages to stop their real-world asset (RWA) tokenization projects in Hong Kong. This move signals broader unease in Beijing toward offshore digital asset ventures, even those linked to mainland institutions. The hesitation about private sector digital finance tools suggests a preference for projects tightly controlled or developed by state-linked entities.
For Ant Group and JD.com, pausing stablecoin projects marks a cautious retreat from plans to expand their fintech influence through tokenized products and cross-border currency use. Both firms had aimed to use stablecoins to ease ecommerce settlement and global payments. This pause may slow their blockchain and digital finance pilots.
Hong Kong’s drive to become a leading digital finance hub is also affected. Without major Chinese companies, its stablecoin ecosystem may struggle to attract investment and scale effectively. Beijing’s intervention shows that while Hong Kong enjoys regulatory autonomy, ultimate control on financial matters rests with the mainland. Observers note this move strengthens Beijing’s focus on the digital yuan and signals tighter rules on private digital currency innovation, even in semi-autonomous regions.
Outlook On The Market
This episode is a clear reminder that in China’s financial ecosystem, private innovation must align with state objectives or face shutdown risks. Hong Kong’s digital finance future remains uncertain as it navigates between ambitious regulation and mainland oversight. For those following digital currency trends in Asia, this pause signals a shift toward stronger state dominance in shaping the future of money.
Overall, this development highlights the tightrope Hong Kong must walk to remain competitive in global fintech while respecting Beijing’s monetary priorities. The pause also raises questions about how renminbi internationalization can evolve when private stablecoins face such significant regulatory limits.
Written By Fazal Ul Vahab C H