Major Chinese tech companies, including Ant Group and JD Coinlink, have decided to postpone the launch of stablecoins in Hong Kong following recommendations from Chinese regulatory authorities. This decision comes amid growing concerns from the People’s Bank of China and the Cyberspace Administration of China regarding potential risks to the country’s financial system.
This is reported by Finway
Regulatory Pressure and the Position of the People’s Bank of China
In April 2025, the Hong Kong Ministry of Finance announced changes to legislation aimed at regulating the stablecoin market and related financial instruments. Following this, Ant Group and JD Coinlink expressed their intention to participate in a pilot project that involved the issuance of stablecoins pegged to the yuan.
However, the companies’ subsequent actions were halted due to directives received from the People’s Bank of China and the Cyberspace Administration. Sources indicate that regulators expressed concerns about the growing influence of private stablecoins and their potential dominance in the market, which could pose a threat to the official digital currency — the digital yuan.
“The real regulatory issue is who has the ultimate right to issue such assets — the central bank or any private companies in the market?”
Concerns About Risks and the Future of Stablecoins
The leadership of the People’s Bank of China also emphasized the need for a cautious approach to the implementation of stablecoins. In August 2025, the head of the regulator, Zhou Xiaochuan, during a speech at the China Finance 40 forum, highlighted that excessive use of stablecoins could lead to speculation, fraud, and destabilization of the financial system.
Zhou Xiaochuan also pointed out that in the retail payment sector, stablecoins have limited potential due to their inability to significantly reduce costs, and he called for a measured assessment of the prospects for tokenizing real assets.