Hong Kong Regulators Warn Against Unapproved Yuan-Backed Stablecoins

Hong Kong's financial watchdogs have issued a stark warning to investors regarding unlicensed stablecoins pegged to the Chinese yuan. The Hong Kong Monetary Authority (HKMA) emphasized that no approvals have been granted under the city's new Stablecoin Ordinance, despite growing market interest.

Recent claims of an officially sanctioned yuan stablecoin circulating on social media were flatly denied by the HKMA. The regulator's WeChat statement comes just days after AnchorX, a Hong Kong firm, launched AxCNH—an offshore yuan-pegged token claiming authorization from Kazakhstan's financial authority.

The regulatory crackdown highlights the tension between innovation and compliance in Hong Kong's burgeoning digital asset sector. While the Stablecoin Ordinance has attracted numerous applicants, the HKMA maintains a cautious approach as it evaluates potential issuers.