Beijing Instructs Tech Titans to Pause Stablecoin Plans
Chinese tech giants have been reportedly told by regulators not to proceed with plans to issue stablecoins in Hong Kong.
Chinese regulators, including the People’s Bank of China and Cyberspace Administration of China, have told major tech firms not to pause plans to issue stablecoins in Hong Kong, according to a «Financial Times» report citing unnamed sources. The firms included Alibaba-backed Ant Group and e-commerce giant JD.com, with concerns about allowing tech groups and brokerages to issue any type of currency cited as the reason.
After passing a stablecoin bill in May, Hong Kong’s new regime for fiat-pegged digital currencies came into effect in August, which allows issuance for those that have obtained a license from the city’s banking regulator.
Markets demonstrated strong enthusiasm, with the share of some listed companies skyrocketing simply by announcing exploration-related plans. The Hong Kong Monetary Authority subsequently tamed sentiments, noting that only a handful of licenses will be granted at most in the initial stages.
