Beijing tells Ant Group and JD to pause Hong Kong stablecoin push
Ant Group and JD.com have stopped their plans to issue stablecoins in Hong Kong after mainland regulators told them not to proceed, according to people familiar with the matter cited by the Financial Times.
The companies shelved their stablecoin work tied to Hong Kong's new licensing regime after the People's Bank of China and the Cyberspace Administration of China raised concerns. Both firms had explored participating in pilots under Hong Kong's framework for fiat-referenced stablecoin issuers, which took effect this year.
Beijing intervened as Hong Kong positioned itself as a testing ground for licensed stablecoins. The prospect of non-state entities issuing currency-like instruments prompted regulators to assert oversight. Several other mainland tech firms also received similar instructions in recent days, according to the FT report.
The guidance from financial and internet regulators reflects concerns that private stablecoins could challenge monetary control while the central bank advances the e-CNY. The directive affects efforts centered in Hong Kong, where the legislature approved a licensing framework in May 2025. Implementation began on August 1, though no licensees have been approved yet.
People familiar with the matter told the FT that regulators expressed concern over "currencies controlled by the private sector," a position aligned with the PBoC's stance as it prioritizes the digital yuan.
Former Chinese finance officials have recently warned that stablecoins could fuel speculation. They argued that any renminbi-linked token should develop under strict national oversight. The discussion follows earlier industry lobbying for an offshore yuan stablecoin to counter dollar-pegged tokens.
Mainland China bans most crypto activities domestically while supporting the e-CNY. Regulators continue tightening oversight of private digital-money efforts that could complicate capital controls.
The Hong Kong licensing regime set out authorization requirements for stablecoin issuers, but the mainland intervention shows Beijing maintains control over monetary policy decisions that affect Chinese companies, even when operating in Hong Kong's separate regulatory environment.
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