**Ant Group and JD.com Halt Hong Kong Stablecoin Projects Amid Beijing Regulatory Concerns**
China has directed two of its largest technology firms, Ant Group and JD.com, to suspend their stablecoin initiatives in Hong Kong following regulatory warnings from Beijing. Officials from the People’s Bank of China (PBOC) and the Cyberspace Administration of China emphasized that the issuance of currency-like tokens should remain the exclusive domain of the state, underscoring concerns about monetary sovereignty.
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### Regulatory Pressure on Private Stablecoins
Both Ant Group and JD.com had expressed intentions to participate in Hong Kong’s burgeoning stablecoin ecosystem by applying for licenses under the city’s new regulatory framework launched in August 2025. Ant Group announced plans to seek a stablecoin license as early as June, while JD.com was reportedly developing an offshore yuan-pegged stablecoin.
However, Beijing regulators have made it clear that private companies should not issue digital currencies that could rival the state-backed digital yuan (e-CNY). The PBOC and relevant authorities warned that allowing such private tokens risks undermining the digital yuan’s dominance and weakening central bank authority.
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### Monetary Sovereignty Is Beijing’s Priority
The primary concern driving this regulatory clampdown is the protection of China’s monetary sovereignty. The e-CNY is currently being trialed by hundreds of millions of users across mainland China, reflecting the government’s priority to establish its digital currency as the dominant form of digital money.
Private stablecoins linked to the yuan could potentially fragment the digital currency landscape and diminish the state’s control. Former PBOC governor Zhou Xiaochuan, speaking at a closed-door forum in late August, cautioned that stablecoins might become instruments for speculation or fraud, adding skepticism about their actual utility for everyday retail payments.
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### Wider Crackdown on Tokenization Projects
In addition to stablecoins, the China Securities Regulatory Commission has instructed local brokerages in Hong Kong to cease certain asset tokenization projects. This signals a broader tightening of control over emerging digital asset experiments within the territory.
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### Hong Kong’s Web3 Ambitions Face Mainland Limitations
Hong Kong has positioned itself as a leading hub for Web3 innovation in Asia, pioneering pilot schemes for stablecoin issuance and asset tokenization. Initially, some mainland officials viewed Hong Kong-issued, yuan-pegged stablecoins as tools to enhance the international reach of the Chinese currency and challenge the dominance of U.S. dollar-backed stablecoins.
However, with Beijing’s renewed focus on financial stability and state control, these initiatives have encountered significant barriers. By mid-October, both Ant Group and JD.com had quietly retreated from their stablecoin plans in compliance with mainland directives.
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### Future Outlook for Stablecoins in Hong Kong
Despite the setbacks for major mainland firms, Hong Kong continues to accept applications for stablecoin licenses. Authorities have indicated only a limited number of licenses will be granted, following rigorous reviews to ensure alignment with regulatory standards.
This regulatory intervention highlights China’s broader strategy on digital currencies—encouraging innovation only when it supports national strategic objectives and reinforcing strict control over private digital currency endeavors.
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### Implications for Global Web3 Firms
The pause on mainland tech giants’ stablecoin projects in Hong Kong underscores increasing regulatory scrutiny over tokenization and payment schemes within the city. For global Web3 companies seeking entry into Asian markets, these developments signal that compliance with China’s state-centric monetary policies is essential.
Operating in Hong Kong with aspirations to reach mainland China’s vast consumer base now requires full alignment with Beijing’s regulatory framework and acceptance of its core principle of monetary sovereignty.
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**In summary,** while Hong Kong strives to cultivate a thriving digital asset environment, the influence of Beijing remains defining. Private stablecoin issuance by large tech firms is currently on hold, reflecting China’s cautious approach to digital currency innovation that prioritizes government authority and financial stability.
https://coincentral.com/china-orders-ant-group-and-jd-com-to-suspend-hong-kong-stablecoin-projects-heres-why/
