Key Takeaways
- Regulatory Intervention: Chinese regulators, including the People’s Bank of China and the Cyberspace Administration, instructed major tech firms to suspend their stablecoin initiatives in Hong Kong.
- Tech Firms Affected: Alibaba-backed Ant Group and JD.com had planned to join Hong Kong’s pilot stablecoin program but paused development following Beijing’s warning.
- Policy Priority: Authorities view privately issued stablecoins as a potential threat to the central bank’s e-CNY project and to China’s control over monetary policy.
- Strategic Stance: While Beijing continues to support blockchain innovation through state-led programs, it maintains strict limits on private digital currencies to preserve monetary sovereignty.
Mainland regulators have pressed major Chinese technology companies to halt plans for launching stablecoins in Hong Kong, reflecting Beijing’s ongoing caution toward privately issued digital currencies.
According to Financial Times, Ant Group, the financial affiliate of Alibaba, and e-commerce giant JD.com were among several firms exploring participation in Hong Kong’s digital asset pilot, including stablecoin issuance and tokenized financial products. Their projects have now been put on hold after receiving guidance from the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC).
Chinese regulators have urged firms to halt stablecoin plans, citing concerns over private entities issuing or circulating currency-linked tokens. The People’s Bank of China (PBoC) is said to view such projects as conflicting with its rollout of the digital yuan, or e-CNY, which forms the core of the country’s central bank digital currency strategy.
China Balances Blockchain Progress with Tight Monetary Control
China’s approach to cryptocurrency and blockchain has evolved from early enthusiasm to tight regulatory control.
The country first became involved in digital assets in the early 2010s, when Bitcoin gained popularity among Chinese investors and miners.
In 2013, authorities barred banks from handling Bitcoin transactions, citing financial stability concerns.
By 2017, the government intensified its supervision, shutting down domestic crypto exchanges and banning initial coin offerings to curb speculation and prevent capital outflows.
In 2021, the People’s Bank of China (PBoC) made all cryptocurrency transactions and mining illegal, effectively ending large-scale private crypto activity in the country.
While Beijing has tightened restrictions on private cryptocurrencies, it has positioned blockchain as a strategic technology to be developed within a regulated, state-led framework.
In 2019, it launched the Blockchain-based Service Network (BSN), a government-backed infrastructure for blockchain applications. The same year, China accelerated the rollout of its central bank digital currency, the e-CNY, and began developing technical standards through its “China Standards 2035” initiative.
The current regulatory stance reflects China’s dual policy: blockchain innovation is encouraged, but private control over digital money is not. The recent move to suspend Ant Group and JD.com’s stablecoin projects in Hong Kong underlines Beijing’s priority, supporting financial technology development while maintaining state authority over currency issuance.
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