China’s Crypto Giants Ant Group and JD.com Halt Hong Kong Stablecoin Ambitions Following Beijing’s Regulatory Warning

Beijing's regulatory hammer just dropped—and two of China's biggest tech players are feeling the impact.

The Regulatory Freeze

Ant Group and JD.com abruptly suspended their Hong Kong stablecoin initiatives after Chinese authorities issued a clear warning about digital currency ventures. The move signals Beijing's tightening grip on offshore crypto activities—even when they're launched from Hong Kong's supposedly more flexible regulatory environment.

Corporate Retreat

Both companies had been quietly building stablecoin infrastructure for months, positioning themselves to capitalize on Hong Kong's emerging crypto hub status. Now those plans sit in regulatory limbo while other global players continue charging ahead in the stablecoin race.

Market Implications

This isn't just about two companies—it's about China's broader stance toward digital assets. While mainland China maintains its crypto ban, Hong Kong had been testing the waters with a more progressive approach. Beijing's intervention suggests even Hong Kong's experiments have limits when Chinese tech giants are involved.

Because nothing says 'financial innovation' like watching billion-dollar companies scramble when regulators clear their throats.

Hong Kong’s Stablecoin Dreams Face Mainland Resistance

However, the mood has shifted. The Financial Times reported Sunday that officials at the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the firms to pause or abandon moves to issue or back stablecoins from Hong Kong.

According to FT, Alibaba’s Ant Group and JD com have paused their plans to issue stablecoins in Hong Kong after receiving instructions from Chinese regulators, including the PBOC and CAC, to halt the projects. Hong Kong passed a Stablecoin Bill in May establishing a licensing…

Their main worry is that if large tech firms or brokerages begin issuing tokens that function like currency, it could weaken the central bank’s authority. One person told the FT that regulators are focused on ensuring that the right to issue money remains solely with the state, not private companies.

Hong Kong’s stablecoin licensing regime had created a new frontier. The territory’s de facto central bank, the Hong Kong Monetary Authority (HKMA), rolled out the framework after legislation was passed in May, opening a channel for token-issuers backed by fiat currency.

Officials Shift From Enthusiasm To Restraint On Hong Kong Stablecoins

Some officials in mainland China initially saw the programme as a chance to expand the renminbi’s reach beyond national borders. They believed that yuan-pegged stablecoins issued through Hong Kong could help counter the dominance of US dollar-backed tokens worldwide.

However, that Optimism faded by late August. At a closed-door forum, former PBoC governor Zhou Xiaochuan urged a more cautious approach. He warned that stablecoins could easily become vehicles for speculation or even fraud. He also questioned whether they truly added value to everyday retail payments.

By then, Beijing’s tone had clearly shifted. Regulators began prioritising financial stability and state control over rapid innovation in the digital currency space.

Tug Of War Emerges Between Hong Kong’s Openness And Beijing’s Control

Regulators made it clear that private companies issuing currency-like tokens must yield to China’s priority of preserving monetary control. Innovation, in their view, cannot come at the cost of sovereignty.

For Ant and JD.com, the timing could not be more sensitive. In June, Ant announced plans to apply for a stablecoin licence. Yet by mid-October, both firms had quietly stepped back, following Beijing’s guidance to pause.

The MOVE captures a growing tension between Hong Kong’s push to build a global digital asset hub and Beijing’s preference for restraint. While Hong Kong continues to accept applications, authorities have already cautioned that only a few licences will be approved at first, and only after rigorous scrutiny.