According to a recent report by the South China Morning Post (SCMP), the Hong Kong Monetary Authority (HKMA) has warned local investors against putting money into stablecoins pegged to the Chinese yuan. The regulator emphasized that it has not yet issued any licenses to stablecoin issuers, urging investors to exercise caution.
In a statement shared on WeChat, the HKMA dismissed social media claims suggesting that a yuan-pegged stablecoin had already been officially approved under Hong Kong’s Stablecoin Ordinance.
Last week, Hong Kong-based firm AnchorX launched an offshore yuan-pegged stablecoin called AxCNH. While the HKMA has yet to grant any local stablecoin licenses, AnchorX stated that it holds a valid license from the Astana Financial Services Authority in Kazakhstan.
AxCNH is designed to facilitate cross-border payments, particularly for offshore Chinese businesses and countries participating in China’s Belt and Road Initiative. AnchorX also plans to expand the token’s use to digital-asset trading and real-world asset (RWA) tokenization.
Hong Kong regulators have previously indicated that they are unlikely to approve any stablecoin licenses this year.
The Race for Yuan-Pegged Stablecoins in Hong Kong
Interest in issuing yuan stablecoins remains high. At least 77 institutions have reportedly expressed intentions to register as stablecoin issuers. Many of these applicants are state-owned Chinese firms, including China National Petroleum Corporation and the Bank of China. PetroChina, in particular, is exploring stablecoins to support cross-border settlements for its oil and gas exports.
The surge in interest has fueled a boom in Hong Kong’s digital asset sector. Numerous RWA projects are taking off, and several companies have seen stock gains after announcing plans to issue stablecoins under the HKMA’s framework.
The rapid growth, however, has raised regulatory concerns. The China Securities Regulatory Commission (CSRC) reportedly instructed some local brokerages to halt tokenization activities in Hong Kong, advising at least two firms to suspend offshore RWA operations in recent weeks.
Additionally, in August, the Hong Kong Securities and Futures Commission noted an increase in fraud risks linked to digital assets following the implementation of the Stablecoin Ordinance.
