Ant Group and JD.com suspend projects after regulatory pushback from mainland authorities
Major Chinese technology firms Ant Group and JD.com have reportedly suspended their stablecoin initiatives in Hong Kong, following direct intervention from Beijing regulators concerned about the growing influence of privately issued digital currencies.
According to people familiar with the matter, officials from the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) instructed the companies to pause development of their planned stablecoin projects. The decision marks a significant retreat in Hong Kong’s efforts to establish itself as a global hub for digital asset innovation.
“The real regulatory question is who holds the right of coinage — the central bank or private firms,” one source close to the discussions said, highlighting Beijing’s long-standing stance that monetary authority must remain centralized.
Regulatory uncertainty slows Hong Kong’s digital finance ambitions
Earlier this year, both Ant Group and JD.com had expressed interest in joining Hong Kong’s pilot stablecoin program, launched in August to attract fintech firms exploring tokenized financial products such as digital bonds and yuan-backed coins.
However, momentum faded after Ye Zhiheng, executive director at the Hong Kong Securities and Futures Commission (SFC), cautioned that the new stablecoin licensing regime could increase fraud risks and require stricter investor protection measures.
“The framework adds transparency but also introduces compliance costs that many firms are still evaluating,” said Cynthia Lau, a fintech regulatory analyst based in Singapore. “For mainland companies, Beijing’s oversight now outweighs Hong Kong’s appeal.”
Beijing reins in offshore tokenization
In recent weeks, mainland regulators have also directed several brokerages to pause real-world asset (RWA) tokenization efforts in Hong Kong. The move follows China Merchants Bank’s asset management arm, CMB International, tokenizing a $3.8 billion money market fund on BNB Chain — a milestone that signaled Beijing’s growing discomfort with offshore blockchain expansion.
The shift underscores China’s cautious approach toward digital finance, as authorities seek to maintain strict control over currency issuance while Hong Kong attempts to balance innovation with regulatory alignment.
Beijing’s latest intervention highlights a clear message: digital currency sovereignty remains non-negotiable.
Disclaimer
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