Beijing Halts Tech Giants' Stablecoin Ambitions in Hong Kong

Beijing has blocked efforts from major tech firms including Ant Group and JD.com to establish stablecoin operations in Hong Kong, reinforcing its authority over monetary policy. This directive, issued by the People's Bank of China and the Cyberspace Administration, prohibits private entities from issuing currency-like assets. The decision reflects a shift in Hong Kong's role in digital finance, steering away from private speculation to focus on regulatory compliance. Experts suggest that Hong Kong was perceived as a potential loophole for circumventing mainland restrictions, which had been misaligned with Beijing's stricter crypto policies. The region is expected to adopt measures that facilitate foreign crypto investment rather than support domestic transactions. Recently, both companies had shown interest in acquiring licenses to operate in Hong Kong's progressive digital economy, but regulatory guidance has curbed these ambitions, signaling a recalibration of intentions regarding financial innovation within strict state boundaries.

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