Hong Kong Advances Stablecoin Initiatives Amid Beijing’s Regulatory Caution

Hong Kong's Securities and Futures Commission (SFC) participated in a seminar organized by the Association of Fund Administrators of Hong Kong and the Greater Bay Area, focusing on regulatory compliance in the digital asset sector. The event drew over 150 professionals, including fund managers and legal experts, to discuss risk management for tokenized funds and digital asset funds.

Meanwhile, Chinese tech giants ANT Group and JD.com have paused their stablecoin issuance plans in Hong Kong following intervention by Beijing regulators. The People’s Bank of China and the Cyberspace Administration of China reportedly directed these firms to halt their initiatives, reflecting mainland authorities' wariness toward privately controlled digital currencies.

The seminar highlighted collaborative efforts to enhance technical and regulatory capabilities in fund management, with a particular emphasis on tokenization. Eric Yip, the SFC’s Executive Director of Intermediaries, underscored the importance of compliance as Hong Kong pushes forward with its stablecoin and tokenization agenda.

China’s cautious stance contrasts with Hong Kong’s progressive approach, as the latter seeks to leverage digital assets for RMB internationalization and financial innovation. The divergence underscores the broader tension between regulatory oversight and technological advancement in the region.