Chinese tech giants halt Hong Kong stablecoin plans amid Beijing concerns

Chinese tech giants like Ant Group and JD.com have suspended their plans to launch stablecoins in Hong Kong due to concerns raised by Beijing regulators regarding the issuance of private digital currencies. The People's Bank of China (PBoC) and the Cyberspace Administration of China (CAC) have instructed the companies to halt these initiatives, indicating a regulatory focus on the authority of coinage—whether it belongs to the central bank or private entities. While Hong Kong’s stablecoin program initially attracted interest for promoting renminbi-pegged stablecoins, momentum has dwindled following heightened fraud risks identified by the Hong Kong Securities and Futures Commission. Moreover, broader regulatory measures have led to a slowdown in tokenization activities with local brokerages also advised to pause such initiatives. These developments reflect Beijing's growing unease with the rapid growth of offshore digital assets and stablecoin ventures.

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