A PYMNTS Company

Chinese Tech Firms Halt Stablecoin Plans Amid Beijing’s Regulatory Pushback

By  |  October 19, 2025

Chinese technology companies, including Ant Group and JD.com, have suspended plans to issue stablecoins in Hong Kong following concerns from mainland regulators about the growing influence of privately issued digital currencies, according to The Financial Times.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The decision comes after Chinese authorities — including the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC) — reportedly instructed companies to hold off on launching stablecoin projects, per FT. These directions mark a significant setback for Hong Kong’s ambitions to become a regional hub for digital assets under its newly established regulatory framework.

    Hong Kong’s legislature approved a bill in May that created a licensing system for fiat-backed stablecoin issuers, giving legal clarity to financial institutions and technology companies interested in entering the sector. Under this new system, anyone issuing stablecoins in Hong Kong, or minting tokens backed by the Hong Kong dollar even outside the city, must secure authorization from the Hong Kong Monetary Authority (HKMA).

    Related: The Rush Is On For Stablecoin Issuers Seeking Federal Banking Charters

    Ant Group, backed by Alibaba, had earlier announced its participation in Hong Kong’s pilot stablecoin program in June, while e-commerce platform JD.com had also expressed interest, according to The Financial Times. However, PBOC officials have reportedly urged caution, warning against allowing technology conglomerates and brokerages to issue currencies of any form.

    Requests for comment from Ant Group, JD.com, the PBOC, and the CAC went unanswered. The HKMA, when contacted by Reuters, stated it does not comment on market speculation.

    Stablecoins — digital tokens designed to maintain a stable value by being pegged to fiat currencies such as the U.S. dollar — are a cornerstone of crypto trading infrastructure, helping investors transfer funds between digital assets without the volatility of traditional cryptocurrencies.

    Source: The Financial Times