{"id":17155,"date":"2025-10-19T20:24:24","date_gmt":"2025-10-19T18:24:24","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17155"},"modified":"2025-10-19T20:24:24","modified_gmt":"2025-10-19T18:24:24","slug":"chinas-tech-titans-pause-hong-kong-stablecoin-initiatives-over-beijings-warnings","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/19\/chinas-tech-titans-pause-hong-kong-stablecoin-initiatives-over-beijings-warnings\/","title":{"rendered":"China’s Tech Titans Pause Hong Kong Stablecoin Initiatives Over Beijing’s Warnings"},"content":{"rendered":"

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Chinese tech behemoths, including Ant Group and JD.com, have reportedly halted ambitions to launch stablecoins in Hong Kong after authorities in Beijing raised alarms regarding privately governed digital currencies.<\/p>\n

The firms were directed by the People\u2019s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) to suspend these projects, the Financial Times reported<\/a> on Sunday, referencing sources acquainted with the situation.<\/p>\n

\u201cThe genuine regulatory concern is, who possesses the ultimate authority of minting \u2014 the central bank or any private entities in the marketplace?\u201d one source familiar with the discussions told the FT.<\/p>\n

Both firms had shown interest earlier this year<\/a> in participating in Hong Kong\u2019s pilot stablecoin initiative or in introducing tokenized financial products such as digital bonds.<\/p>\n

Related: <\/strong><\/em>Trump confirms US is in a trade conflict with China<\/strong><\/em><\/a><\/p>\n

Hong Kong\u2019s stablecoin initiative encounters a hurdle<\/h2>\n

Hong Kong commenced receiving applications from stablecoin issuers<\/a> in August. Officials from the mainland initially perceived the program as a means to foster renminbi-pegged stablecoins and enhance the yuan\u2019s global presence.<\/p>\n

Nevertheless, the momentum swiftly diminished as Ye Zhiheng, executive director of the intermediaries division at the Hong Kong Securities and Futures Commission (SFC), cautioned that the city\u2019s novel<\/a> stablecoin regulatory structure has amplified the risk of fraud.<\/p>\n

People’s Bank of China Headquarters, Beijing. Source: <\/em>Wikimedia<\/em><\/a><\/figcaption><\/figure>\n

Ye\u2019s comments came after stablecoin firms operating in Hong Kong registered double-digit declines on Aug. 1<\/a>, just following the implementation of the new stablecoin regulation.<\/p>\n

Last month, the Chinese financial publication Caixin indicated that Beijing had limited Hong Kong\u2019s stablecoin operations. However, the report was taken down shortly<\/a> after its release, raising questions about its validity.<\/p>\n

Related: <\/strong><\/em>US and China ease trade rhetoric, raising analysts’ hopes for market recovery<\/strong><\/em><\/a><\/p>\n

China reverses stance on Hong Kong tokenization drive<\/h2>\n

Last month, China\u2019s securities regulator also reportedly ordered<\/a> several local brokerages to halt their real-world asset (RWA)<\/a> tokenization efforts in Hong Kong, signifying Beijing\u2019s increasing discomfort with the rapid growth of offshore digital asset endeavors.<\/p>\n