Beijing Halts Tech Giants’ Stablecoin Ambitions in Hong Kong: FT

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China has moved to block private stablecoin ambitions in Hong Kong, in what could be interpreted as an effort to reaffirm its state authority over monetary policy. Two of China’s largest technology companies, Alibaba-backed Ant Group and JD.com, an e-commerce group, have been instructed to suspend their stablecoin plans in Hong Kong. That follows guidance from the People’s Bank of China and the Cyberspace Administration of China, which warned against allowing private entities to issue currency-like assets, according to a Saturday report from the Financial Times.  Beijing’s move signals a recalibration of Hong Kong’s role in digital assets as it aligns with Beijing’s regulatory priorities. Instead of expanding on retail speculation, it shows a push toward disciplined, cross-border compliance where innovation is tolerated only within clearly defined state and policy boundaries. There appears to be a tendency to “push a narrative that Hong Kong could serve as a loophole for mainland firms to circumvent PRC crypto restrictions, especially around stablecoins,” Joshua Chu, lawyer, lecturer, and co-chair of the Hong Kong Web3 Association, told Decrypt. “This was never Beijing’s intention,” Chu said, noting how China’s crypto strategy “views speculative retail participation within the mainland as off-limits.” What’s happening “is a natural refinement emphasizing responsible innovation and compliance rather than speculative hype,” he explained. “Hong Kong’s reputation depends on maintaining a clean, sophisticated framework that supports genuine market growth without undermining Beijing’s policies.” Beijing’s intention for Hong Kong’s stablecoin regime is “designed to absorb foreign crypto capital, not serve as a conduit for domestic mainland transactions,” Chu said, adding that there is a misconception around private entities that neglects China’s pronouncement from 2021 regarding risks in speculative virtual currency transactions, which are still in effect. The directive comes just months after both firms signaled interest in Hong Kong’s new stablecoin framework…