Chinese Tech Giants Halt Hong Kong Stablecoin Plans After Beijing Intervention

Ant Group and JD.com have suspended plans to issue stablecoins in Hong Kong following direct instructions from mainland Chinese regulators. The People's Bank of China and Cyberspace Administration of China intervened as Beijing tightens control over digital currency issuance, despite Hong Kong's progressive regulatory framework.

Hong Kong's legislative approval of a stablecoin licensing regime in May created what appeared to be a clear pathway for compliant issuers. The new rules required licensing from the Hong Kong Monetary Authority for any stablecoin pegged to the Hong Kong dollar. This development had attracted interest from major Chinese tech firms seeking to participate in the special administrative region's digital currency pilot programs.

Market observers note the MOVE underscores Beijing's determination to maintain oversight of monetary instruments, even those issued outside mainland China. The intervention occurs as global regulators increase scrutiny of stablecoins, with concerns about their potential impact on monetary sovereignty and financial stability.