China Halts Ant & JD Hong Kong Stablecoins, Safeguarding e-CNY
Chinese regulators led by the People’s Bank of China and Cyberspace Administration have ordered Ant Group and JD.com to pause their Hong Kong stablecoin projects. Despite Hong Kong’s new stablecoin framework attracting over 70 license applications, Ant International and Ant Tech had already launched pilot tests, and JD highlighted cross-border payment gains. Officials warn private stablecoins could erode currency sovereignty, facilitate capital flight through “compliant innovation,” and create shadow banking channels that undermine monetary policy and China’s central bank digital currency (digital yuan) rollout. Regulators also directed mainland brokers to suspend real-world asset tokenization in Hong Kong and refrain from favorable stablecoin research. The halt leaves a market gap likely to be filled by international banks and non-Chinese issuers. For traders, this development signals heightened regulatory risk around Hong Kong stablecoin ventures and underscores China’s priority of financial security over crypto innovation.
Bearish
The regulatory intervention increases policy risk for Hong Kong stablecoin initiatives, likely dampening market enthusiasm for offshore RMB tokens. In the short term, uncertainty may slow issuance and trading volumes, weakening stablecoin-related assets. Long term, China’s strict stance may deter domestic issuers but open opportunities for international players. This news is bearish for Hong Kong stablecoins as it curbs growth and reduces market confidence in private stablecoin ventures.