Chinese Tech Giants Halt Stablecoin Projects Amid Regulatory Pressure

Ant Group and JD.com have suspended their stablecoin initiatives in Hong Kong following intervention from Beijing regulators. The People’s Bank of China and the Cyberspace Administration of China raised fundamental concerns about private sector involvement in digital currency issuance, questioning whether coinage rights should reside with central banks or corporations.

Hong Kong's stablecoin program, once seen as a progressive step for the region's crypto ambitions, now faces delays after mainland authorities flagged fraud risks in August. The regulatory clampdown extends beyond stablecoins, with Beijing instructing brokerages to cease tokenizing real-world assets in the special administrative region.

The moves reflect China's tightening grip on offshore digital asset activities, particularly those involving private enterprises. "The real regulatory concern is who has the ultimate right of coinage—the central bank or any private companies on the market," a source familiar with the discussions noted.