Beijing Orders Ant Group and JD.com to Halt Stablecoins

The People's Bank of China and the Cyberspace Administration of China ordered Ant Group and JD.com to halt plans to issue stablecoins and virtual asset-backed products in Hong Kong. The regulatory intervention follows a licensing regime established by the Hong Kong Monetary Authority in August 2025, which aimed to position the city as a global digital finance hub.

Beijing officials cited concerns that allowing private technology companies and brokerages to possess the "ultimate right of coinage" would undermine the state monopoly on monetary policy. The directives are intended to protect the state-backed digital yuan (e-CNY) and enforce strict capital controls. The move contradicts previous commitments by both companies to join Hong Kong's pilot program, including ambitions by JD.com founder Liu Qiangdong to apply for licenses in every major country.

This regulatory pivot aligns with warnings from former PBoC governor Zhou Xiaochuan, who suggested that stablecoins could facilitate fraud, asset speculation, and financial instability. While some officials previously viewed renminbi-based stablecoins as a strategic tool to challenge the U.S. dollar's global dominance, the central bank and cyberspace regulators have now prioritized national financial strategy over private issuance.