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.

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Author: Vince Dioquino