Hong Kong:  Chinese technology companies, including Alibaba-backed ANT Group and e-commerce giant JD. com, have suspended their plans to issue stablecoins in Hong Kong following intervention by Chinese regulators. The move highlights Beijing's cautious stance on private sector involvement in currency issuance.

According to reports from the Financial Times, the People's Bank of China (PBOC) and the Cyberspace Administration of China (CAC) advised these firms against proceeding with their stablecoin initiatives. The regulators expressed concerns about the potential for private entities to control currencies, which could undermine state authority over monetary policy.

This development follows Hong Kong's passage of a stablecoin bill in May 2025, establishing a licensing framework for fiat-referenced stablecoin issuers. The legislation requires any entity wishing to issue stablecoins in Hong Kong, or backed by Hong Kong dollars, to obtain authorization from the Hong Kong Monetary Authority (HKMA). Both Ant Group and JD.com had previously indicated their intention to participate in the city's stablecoin pilot program.

Despite Hong Kong's efforts to regulate and promote stablecoin initiatives, Beijing's intervention reflects its ongoing wariness about private sector involvement in currency issuance. Stablecoins, which are typically pegged to fiat currencies like the U.S. dollar, are widely used in cryptocurrency markets to facilitate trading.

The suspension of these projects marks a significant setback for the companies involved and underscores the complex interplay between regional regulatory environments and the ambitions of major tech firms.