Chinese tech giants, including Alibaba-backed Ant Group (688688.SS) and e-commerce company JD.com have halted plans to issue stablecoins in Hong Kong after the government raised concerns about the increasing influence of privately controlled currencies, the Financial Times reported on Saturday.
The companies put their stablecoin initiatives on hold after receiving instructions from Chinese regulators, including the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC), to delay their plans, according to sources cited by the FT.
In May, Hong Kong's legislature passed a stablecoin bill that established a licensing framework for issuers of fiat-backed stablecoins, providing regulatory clarity for future participants. Under this new framework, anyone wishing to issue stablecoins in Hong Kong—or those issuing stablecoins backed by Hong Kong dollars, whether inside or outside the city—must obtain a licence from the Hong Kong Monetary Authority (HKMA).
Ant Group had announced in June its intention to participate in the pilot stablecoin programme, and JD.com had also expressed interest in joining, according to the FT.
PBOC officials reportedly advised against joining the initial rollout of stablecoins due to concerns about permitting tech companies and brokerages to issue any form of currency, the FT added.
Reuters was unable to immediately verify the report. Ant Group, JD.com, the PBOC, and the CAC did not respond to requests for comment. A spokesperson for the HKMA told Reuters on Sunday via email that the authority does not comment on market rumours.
Stablecoins, a type of cryptocurrency designed to maintain a stable value, usually pegged to a fiat currency such as the US dollar, are commonly used by crypto traders to transfer funds between different tokens.
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