Chinese tech giants halt Hong Kong stablecoin plans amid Beijing concerns

Chinese tech companies, including Ant Group and JD.com, have suspended their plans to issue stablecoins in Hong Kong following concerns from Beijing regulators about privately controlled digital currencies. The People's Bank of China and the Cyberspace Administration of China instructed these firms to pause their initiatives amid regulatory discussions regarding who should have the authority to issue currency—central banks or private companies. This regulatory caution comes as Hong Kong had previously initiated a stablecoin pilot program viewed as a way to bolster the international use of the renminbi. However, reports suggest that the momentum slowed as regulatory frameworks raised risks associated with fraud. Moreover, China's securities regulators have indicated discomfort with the rapid growth of offshore digital assets, leading to further pauses in tokenization activities by local brokerages. Overall, this reflects Beijing's unease with the expansion of private financial ventures in Hong Kong.

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