Chinese tech giants Ant Group and JD.com have paused plans to issue stablecoins in Hong Kong after being told to stop by mainland regulators, according to reports. The move comes as Beijing reasserts control over who can issue money-like tokens, even as Hong Kong builds a legal path for licensed stablecoin firms.
Beijing Steps In
People’s Bank of China and the Cyberspace Administration of China asked the companies not to go ahead with their projects, people familiar with the matter told reporters.
Ant had said in June it planned to take part in Hong Kong’s pilot for fiat-referenced stablecoins, and JD.com had signalled similar interest.
Hong Kong’s legislature passed a stablecoin bill in May that created a licensing regime for issuers, aiming to bring rules and clarity to the market after years of uncertainty.
Under that law, anyone issuing stablecoins tied to Hong Kong dollars must hold a license from the Hong Kong Monetary Authority.
According to FT, Alibaba’s Ant Group and JD com have paused their plans to issue stablecoins in Hong Kong after receiving instructions from Chinese regulators, including the PBOC and CAC, to halt the projects. Hong Kong passed a Stablecoin Bill in May establishing a licensing…
— Wu Blockchain (@WuBlockchain) October 19, 2025
Industry Reaction And Risk Concerns
Regulators in Beijing have warned that privately run stablecoins could threaten monetary control if large tech groups or brokerages were allowed to act like currency issuers.
Reports have disclosed that PBoC officials were particularly uneasy about letting non-state firms issue tokens that might operate like money.
Total crypto market cap at $3.72 trillion on the daily chart: TradingView
Stablecoins are usually pegged to a fiat currency such as the US dollar and are widely used by traders to move funds between crypto assets, which is why officials worry about the scale and reach such tokens could achieve.
The concern is less about the technology and more about who controls the payments and reserves that back these tokens.
Hong Kong’s Timeline And What Might Happen Next
Hong Kong has said it expects to begin issuing licenses under its stablecoin regime in the near term, with regulators signaling that only a limited number of licenses would be granted at first.
Market watchers see the city as a testing ground for regulated, fiat-backed tokens — but mainland guidance can change the plans of Chinese firms that want to participate.
The pause follows broader signals from Beijing about offshore digital asset activity. In recent months, regulators have also asked some brokerages to slow or stop tokenization and other real-world asset work tied to Hong Kong, reflecting wider caution about rapid growth of crypto-linked products across borders.
Featured image from Gemini, chart from TradingView
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