Chinese tech giants, led by Alibaba's Ant Group and JD.com, have suspended plans to issue stablecoins in Hong Kong following direct intervention from Beijing regulators, the Financial Times reported on Sunday.
Chinese authorities, including the People's Bank of China (PBoC) and the Cyberspace Administration of China, have ordered companies not to proceed with their stablecoin ambitions.
The move highlights Beijing's concern about the creation and control of digital currencies by private sector companies, even in the Hong Kong special administrative region.
This suspension comes despite Hong Kong having established a clear regulatory framework for stablecoins.
According to the report, People's Bank of China officials have advised against participation in the initial launch, driven by fundamental concerns about allowing private technology companies and brokerages to issue any form of currency.