Chinese technology giants, including Ant Group and JD.com, have reportedly suspended plans to issue StableCoins in Hong Kong after regulators in Beijing voiced concerns over privately controlled digital currencies.
Companies have been directed by the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC) to pause these initiatives, the Financial Times reported on Sunday, citing sources familiar with the matter.
“The real regulatory concern is, who has the real rights to the coin – the central bank or any private market companies?” A source familiar with the discussions told the FT.
Both companies had expressed interest earlier this year By joining Hong Kong’s Pilot StableCoin program or launching tokenized financial products such as digital bonds.
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Hong Kong’s StableCoin Push Hits a Snag
Hong Kong began to receive Applications for StableCoin issuers in August. Mainland officials initially viewed the program as an opportunity to promote Renminbi-pegged StableCoins and expand the Yuan’s international footprint.
However, the momentum soon slowed as Ye Zhiheng, executive director of the Intermediaries Division at the Hong Kong Securities and Futures Commission (SFC), warned that the city was new StableCoin’s regulatory framework increases the risk of fraud.
Ye’s remarks followed StableCoin companies operating in Hong Kong Posting double-digit losses on August 1just after the new regulation of StableCoin.
Last month, Chinese financial outlet Caixin reported that Beijing had restricted Hong Kong’s stablecoin activity. However, the report was removed shortly After publication, its claims were cast into doubt.
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China U-turns on Hong Kong Tokenization Push
Last month, China’s security watchdog was also reported taught Many local brokers to pause their Real-World Assets (RWA) The tokenization activities in Hong Kong, which sign Beijing’s growing reluctance to rapidly expand digital ventures.
The move comes as tokenization is gaining momentum in the country. Last week, CMB International Asset Management (CMBI), a Hong Kong-based subsidiary of a Major Chinese Commercial Bank, China Merchants Bank (CMB), already tokenized its $3.8 billion Money Market Fund (MMF) on the BNB chain.
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