China Halts Ant, JD's Hong Kong Stablecoin Plans Citing Regulatory Concerns

Chinese tech giants Ant Group and JD.com have halted their plans to issue stablecoins in Hong Kong following direct orders from Beijing regulators, including the People’s Bank of China (PBoC) and the Cyberspace Administration of China. The regulators expressed concerns about private companies having the "ultimate right of coinage," emphasizing the importance of maintaining state control over monetary issuance and protecting the dominance of the digital yuan (e-CNY). This move disrupts Hong Kong’s ambitions to become a leading Web3 and fintech hub despite its new stablecoin licensing regime, reflecting Beijing’s broader strategy to tightly regulate private digital currencies and preserve monetary sovereignty. The intervention also signals a broader clampdown, as authorities have instructed local brokerages to pause related tokenization projects, highlighting caution against financial instability and fraud risks. While some officials had initially seen renminbi-pegged stablecoins as a tool to extend the yuan’s international use and challenge U.S. dollar dominance, the intensified regulatory stance underscores the state’s monopoly over digital currency issuance. Overall, this development illustrates Beijing's prioritization of centralized control over digital finance despite regional efforts to innovate in the blockchain and stablecoin space.