20th October 2025 – (Hong Kong) Chinese technology giants Ant Group and JD.com have suspended their plans to develop stablecoins in Hong Kong following direct intervention from Mainland regulators. The move represents a substantial setback for Hong Kong’s ambitions to become a leading digital asset hub and highlights Beijing’s firm stance on maintaining control over monetary systems.
The suspension came after instructions were issued by the People’s Bank of China and the Cyberspace Administration of China. According to sources familiar with the matter, central authorities questioned whether private enterprises should have any role in currency issuance, even in offshore markets. This regulatory position highlights fundamental concerns over financial sovereignty and the primacy of state-controlled monetary policy.
Hong Kong had begun accepting applications for stablecoin issuers in August, initially viewing the programme as a potential platform for promoting renminbi-pegged digital currencies. However, the initiative encountered headwinds after officials from the Hong Kong Securities and Futures Commission voiced concerns about increased fraud risks within the new regulatory framework.
The regulatory reassessment extends beyond stablecoins. Reports indicate that the China Securities Regulatory Commission has also instructed several domestic brokerages to pause their real-world asset tokenization activities in Hong Kong. These coordinated actions suggest a comprehensive review of offshore digital asset ventures with connections to mainland Chinese firms.
Despite these restrictions, tokenization activity in Hong Kong has not completely stalled. In a recent development, CMB International Asset Management, a subsidiary of China Merchants Bank, successfully tokenized a $3.8 billion money market fund on BNB Chain. This indicates that blockchain-based innovation may continue, provided it is led by established financial institutions rather than private technology firms.
