According to the Financial Times, major Chinese technology companies have delayed plans to launch stablecoins in Hong Kong following guidance from Chinese regulators.
Regulatory Concerns Drive Delay
Companies such as Ant Group and JD Coinlink had initially planned to participate in a pilot program to issue Yuan-pegged stablecoins. However, the People’s Bank of China (PBOC) and the Cyberspace Administration of China (CAC) recommended postponing these initiatives due to concerns over the growing dominance of private stablecoins. Regulators view such assets as a potential challenge to the digital yuan and have urged caution.
One source told the Financial Times:
“The real regulatory challenge lies in determining who has ultimate authority to issue these assets — the central bank or private companies?”
Hong Kong Legislative Changes
In April 2025, the Hong Kong Ministry of Finance announced updates to the legal framework aimed at regulating stablecoins. Ant Group and JD Coinlink had initially expressed interest in launching their digital tokens under this framework. However, the recent regulatory guidance prompted a pause in these plans.
Central Bank Warnings
PBOC Governor Zhou Xiaochuan, speaking at the China Finance 40 Forum in August 2025, highlighted risks associated with excessive use of stablecoins for speculative purposes. He warned that misuse could lead to fraud and financial instability. Zhou also noted that the practical potential for stablecoins in retail payments remains limited and called for careful assessment of real-world asset tokenization initiatives.
Outlook for Private Stablecoins in China
The postponement underscores the cautious stance of Chinese regulators regarding private stablecoins. While innovation in the sector continues, authorities prioritize financial stability and central bank oversight, signaling that private issuance of stablecoins will face strict scrutiny in the near future.
