Key Points :
- China’s central authorities — the People’s Bank of China (PBoC) and Cyberspace Administration of China (CAC) — have intervened to halt private-sector stablecoin projects by major tech firms in Hong Kong.
- Two major Chinese tech companies, Ant Group and JD.com, paused their plans for issuing stablecoins in Hong Kong after regulatory pressure.
- The intervention reflects China’s push to preserve monetary sovereignty and ensure that only the state issues “money-like” tokens, especially given the advancement of the digital yuan (e-CNY).
- Hong Kong’s regulatory framework for stablecoins — including licenses for fiat-backed tokens — remains in place, but enthusiasm has cooled amid mainland China’s tighter stance.
- For blockchain/crypto practitioners, the shift signals a changed opportunity landscape: tokenization and stablecoin issuance in Greater China face higher regulatory headwinds; cross-border and tokenised-asset strategies must adapt.
Introduction: A Turning Point in China’s Crypto-Regime
In late October 2025, reports emerged that China’s top financial and cyber regulators instructed private firms to cease or suspend stablecoin launches in Hong Kong. The scale of this move is notable: it covers two major tech firms, Ant Group and JD.com, and marks a clear signal from Beijing that private issuance of currency-like tokens will not be tolerated unless it falls strictly under state control.
For those in the blockchain and crypto space seeking new digital-asset opportunities or tokenisation use cases, this development matters deeply. China has long been a headline region in digital-currency innovation, from large-scale trials of its digital yuan (e-CNY) to Hong Kong’s ambitions as a regulated stablecoin hub. Now, the regulatory winds appear to shift — not away from digital currency entirely, but toward tighter state dominion over issuance and currency functions.
1. What Happened: Private Stablecoins Halted
1.1 Tech Firms Freeze Plans
Ant Group (Alibaba’s fintech affiliate) and JD.com were among the firms that publicly expressed intent to apply for stablecoin-issuer licences in Hong Kong under the new regulatory regime. In June 2025, Ant announced it planned to apply once the licence process opened.
However, recent reports indicate that the PBoC and CAC intervened and told these firms to stop or suspend their stablecoin projects. One source told the Financial Times: “The real regulatory concern is, who has the ultimate right of coinage — the central bank or any private companies on the market?”
1.2 Regulatory Motivations
The core concern of regulators is the preservation of monetary sovereignty. If large tech firms or financial brokers issue tokens that resemble or function like money, it could challenge the monopoly of the central bank. This is especially relevant as China pushes its e-CNY digital-currency agenda.
At the same time, regulators flagged broader risks: tokenised assets and stablecoins have high potential for fraud, speculation and destabilising flows. Hong Kong’s securities regulator warned of these risks in the context of the recently enacted stablecoin law.
1.3 Hong Kong’s Framework — In Theory vs In Practice
Hong Kong’s legislative move: In May 2025, the region passed a Stablecoins Ordinance. It opened a licensing regime for fiat-referenced stablecoins (FRS) backed by Hong Kong dollars and other eligible fiat currencies. The licence requirement applies to any entity issuing stablecoins within or outside Hong Kong that reference the Hong Kong dollar.
Applications opened in August. However, despite the clear regulatory path, actual issuance and private-sector participation are now stalling, thanks to mainland China’s intervention.
2. Why It Matters for Blockchain & Crypto Practitioners
2.1 Stablecoin Issuance Opportunity is Changing
For firms and developers looking to issue or work with stablecoins in Greater China — especially Hong Kong as a gateway — this is a sobering signal. The “easy” path of building a tokenised product backed by tech-firm issuance is no longer assured. Instead, you must expect state-centric control and see higher hurdles.
2.2 Tokenisation of Real-World Assets (RWA) Also Slowed
Beyond stablecoins, tokenisation of real-world assets (RWA) is also under scrutiny. Reports note that Chinese regulators directed Hong Kong-based brokerages to pause certain tokenisation activities in Hong Kong. For practitioners building blockchain systems for tokenisation (fin-tech platforms, asset-token launches), this means shifting risk assessments and go-to-market strategies.
2.3 Monetary Sovereignty Wins Over Innovation (At Least Here)
What the move highlights is that innovation will proceed — but under the state’s framework and strategy. The digital-asset scene in China is less about “permissionless disruption” and more about “state-endorsed systems”. The state is signalling that monetary or quasi-monetary functions are not open to free-wheeling private issuance.
2.4 Global Implications: Large-Scale Stablecoin Issuance Still Competitive
Globally, stablecoin issuance continues to surge and the regulatory debate persists. But China’s case shows one axis of the model: token issuance tied to state control and domestic currency dominance. For practitioners thinking internationally, the question is how your issuance/licensing strategy interacts with jurisdictional controls, especially for cross-border use.
3. Recent Trends & What’s Next – Beyond the Headline
3.1 China’s e-CNY Push and Global Ambitions
China has been steadily rolling out its digital yuan (e-CNY) and sees digital currency as part of its broader strategy to internationalise the renminbi. As of July 2024, transaction volumes hit 7.3 trillion yuan. But free conversion of the yuan and cross-border usage remain limited; stablecoin experiments offer another avenue. Indeed, earlier this year China reportedly considered yuan-backed stablecoins to boost the currency’s global footprint.
3.2 Hong Kong’s Licence Programme Still Alive…But Hindered
Although Hong Kong’s licence framework remains intact, the pace of private-sector moves has slowed. Only a limited number of licences are expected initially. Hong Kong remains a potential Web3 hub — but the mainland’s caution dampens immediate upside.
3.3 Global Stablecoin Ecosystem Accelerates
While China is tightening, elsewhere stablecoin issuance continues to scale rapidly. The International Monetary Fund and World Bank note a 324% uptick in global stablecoin issuance in one quarter. For practitioners, this means more competition, more regulatory exposure, and more need to map jurisdictions carefully.
3.4 Tokenisation Use-Cases Still Viable, But Jurisdiction Matters
Tokenisation of real-world assets (RWAs) remains a promising use case: property, funds, bonds, securitisations. Hong Kong had aimed to be a hub for this. But with regulatory caution from Beijing, firms may pivot to other jurisdictions (Singapore, Dubai, Europe) or design products where issuance and compliance reflect the state’s role.
4. Strategic Takeaways for Innovators & Investors
4.1 For Stablecoin/Token-Issuers: Jurisdictional Strategy is Key
If you’re exploring issuing a stablecoin or tokenising assets, ask:
- Under which jurisdiction and regulator will we operate?
- Who holds the issuance rights and reserve-backing?
- How will the rights of issuance align or conflict with local monetary-sovereignty concerns?
In China/Hong Kong, private issuance is facing roadblocks — so alternative jurisdictions may offer better entry points.
4.2 For Investors Seeking “Next Crypto”: Watch Regulation as Much as Technology
The private stablecoin freeze is a reminder: regulatory risk is as material as technical innovation. If a token issuance depends on a jurisdiction with tight state control, that poses heightened risk. On the flip side, tokens aimed at jurisdictions with prior openness (US, Europe, Singapore) may face better structural support — but still require compliance.
4.3 For Blockchain Practitioners Exploring Tokenisation: Design for Compliance from Day One
When building tokenisation platforms (RWAs, digital bonds, asset-backed tokens), design with regulatory guardrails: who issues the tokens, how are assets held, what licenses are needed? In regions like China/HK, the state may step in. Therefore, design for flexibility across jurisdictions.
4.4 For Cross-Border & Emerging-Market Use-Cases: Monitor China’s Influence
China’s stance matters for global flows. If China favours its own digital yuan programme and restricts token issuance by others, then innovation may shift to include China-compatible models (state permissioned) or steer well clear of the Chinese regulatory sphere. This could open opportunities in ASEAN, Middle East, Africa.
5. Case Study: What Ant Group & JD.com Tell Us
Ant International (Ant Group’s overseas arm) announced in June 2025 that it planned to apply for a stablecoin issuer licence in Hong Kong under the new regime. But just months later, it and JD.com ran into regulator-issued pauses.
This shows how quickly strategic plans can be derailed by regulatory shifts. For tech firms eyeing crypto and blockchain issuance in China or Hong Kong, this signals caution: your plan may need a “Plan B” outside the mainland sphere.
6. What This Means for New Crypto Projects & Revenue Streams
6.1 Crypto Projects Targeting Greater China Need Realignment
If your project was planning a Hong Kong- or China-linked token issuance, you’ll need to reassess: Are you proceeding under a private stablecoin label (likely blocked)? Or pivot to state-approved digital currency models (much harder)?
6.2 Revenue Streams in Blockchain Services Are Still Open
Services such as tokenisation platform development, infrastructure for licensed issuers, cross-border payments, and integration with CBDCs remain potential revenue streams. But the structure is shifting: state-oriented or compliance-heavy models will dominate.
6.3 New-Coin Discovery: Be Mindful of Regulatory Story
When seeking “the next crypto” to invest in, look beyond tokenomics and consider: regulatory positioning, jurisdictional alignment, issuance rights, and reserve-backing transparency. Because projects in jurisdictional grey-zones (like private issuance in China) may face abrupt roadblocks.
Conclusion: Navigate Regulatory Groundwaters Before Innovation Surfing
For practitioners and investors in the blockchain and crypto sphere, the latest move by China’s regulators is a reminder that who issues, where, and under what licence matters just as much as what you issue and how you issue it. The freezing of stablecoin ambitions by Ant Group and JD.com shows that even tech giants are subject to monetary-sovereignty strictures.
If you are exploring tokenisation, stablecoins, or new crypto revenue channels in Asia, the safe path is to build your strategy around clarity of jurisdiction, regulatory alignment, issuance rights, and reserve-backing transparency. At the same time, keep an eye on global stablecoin momentum: while China limits private issuance, other jurisdictions are accelerating — offering potential windows for innovation and investment.
In short: innovate wisely, align with regulatory realities, and design for global flexibility. The next wave of value in blockchain may not be in the most hyped geography — but in the geography where compliance, clarity and issuance rights align.
