Regulators pause yuan-stablecoin plans by Ant Group and JD.com in HK

Chinese technology firms Ant Group and JD.com have halted plans to issue yuan‑linked stablecoins in Hong Kong after Chinese regulators instructed them to pause the initiatives, people familiar with the matter said. The moves, disclosed in recent days, affect projects that would have used Hong Kong’s new licensing framework for fiat‑referenced stablecoin issuers.

Officials from the People’s Bank of China and the Cyberspace Administration of China advised the firms not to participate in the initial rollout, citing concerns about private entities issuing currency‑like instruments and the potential for such activity to blur the line between commercial fintech innovation and sovereign monetary authority, the people said. Regulators also directed some brokerages and industry groups to stop promoting stablecoins, and instructed several mainland‑linked brokerages to pause tokenization activities tied to real‑world assets in Hong Kong.

Hong Kong’s legislature adopted a stablecoin licensing regime in May and began accepting applications in August. Under the rules, any person issuing stablecoins in or backed by Hong Kong dollars must obtain a licence from the Hong Kong Monetary Authority....