TLDR
- Ant Group and JD.com have halted their Hong Kong stablecoin projects after Beijing regulators raised concerns about private firms issuing digital currencies
- The People’s Bank of China and Cyberspace Administration told the companies that only the state should have authority to issue money
- Both companies had planned to apply for stablecoin licenses under Hong Kong’s new licensing regime that launched in August 2025
- Beijing officials worry that private stablecoins could undermine the state-backed digital yuan (e-CNY) and weaken central bank authority
- The China Securities Regulatory Commission has also directed local brokerages to halt certain tokenization projects in Hong Kong
China has instructed two of its largest technology companies to stop their stablecoin plans in Hong Kong. Ant Group and JD.com received warnings from regulators at the People’s Bank of China and the Cyberspace Administration of China.
Chinese tech giants pause stablecoin plans after Beijing steps in https://t.co/Q9JzSDzqCC
— Financial Times (@FT) October 19, 2025
The regulators made clear that private companies should not issue currency-like tokens. Officials stated that only the state should have the authority to create money.
Both companies had shown interest in Hong Kong’s stablecoin pilot program earlier this year. The Hong Kong Monetary Authority launched a new licensing framework in August 2025 after legislation passed in May.
Ant Group announced in June that it planned to apply for a stablecoin license. JD.com was reportedly working on an offshore yuan-oriented stablecoin through Hong Kong.
Regulatory Concerns Over Monetary Control
Beijing’s main concern centers on monetary sovereignty. Regulators worry that stablecoins from large tech firms could compete with the digital yuan.
The e-CNY is currently being tested by hundreds of millions of users across mainland China. Private stablecoins linked to the yuan could reduce the digital yuan’s dominance.
The initial enthusiasm for Hong Kong’s program has faded since late August. Former People’s Bank of China governor Zhou Xiaochuan spoke at a closed-door forum during that time.
He warned that stablecoins could become tools for speculation or fraud. Zhou also questioned whether stablecoins provided real value for everyday retail payments.
The China Securities Regulatory Commission has taken action beyond stablecoins. The agency has directed local brokerages to stop certain asset tokenization projects in Hong Kong.
Hong Kong’s Web3 Ambitions Meet Mainland Limits
Hong Kong has worked to position itself as a leading Web3 hub in Asia. The territory launched pilot programs for stablecoin issuance and asset tokenization this year.
The suspension of major mainland tech projects shows limits to Hong Kong’s regulatory independence. Some mainland officials initially saw yuan-pegged stablecoins as a way to expand the currency’s international reach.
They believed Hong Kong-issued tokens could counter the dominance of US dollar-backed stablecoins. That view has changed as Beijing prioritizes financial stability and state control.
By mid-October, both Ant Group and JD.com had quietly stepped back from their plans. The companies followed Beijing’s guidance to pause their stablecoin projects.
Hong Kong continues to accept stablecoin license applications. Authorities have stated that only a few licenses will be approved initially after thorough review.
The regulatory intervention reflects China’s broader strategy on digital currencies. The government maintains strict control over private digital currency projects while promoting the state-backed e-CNY.
Regulators want innovation to serve national strategic goals. Companies operating in Hong Kong now face increased scrutiny over tokenization projects and payment schemes.
The move creates challenges for global Web3 firms wanting to operate in Asia. Access to mainland China’s consumer base requires alignment with state regulations and acceptance of monetary sovereignty rules.
