**Chinese Firms Halt Hong Kong Stablecoin Plans as Beijing Raises Concerns Over Controlled Digital Currencies**
*October 20, 2025* — Chinese technology firms, including Ant Group and JD.com, have paused their plans to issue stablecoins in Hong Kong following regulatory concerns raised by Beijing over privately controlled digital currencies. This move comes amid heightened caution from mainland authorities as Hong Kong increasingly develops its stablecoin and tokenization ecosystem.
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### SFC Hosts Seminar on Risk Management for Digital Asset and Tokenised Funds
Last week, the Securities and Futures Commission (SFC) participated in a seminar organised by the Association of Fund Administrators of Hong Kong and the Greater Bay Area. The event attracted over 150 attendees, including fund managers, digital asset professionals, legal experts, and compliance officers.
Eric Yip, SFC’s Executive Director of Intermediaries, delivered the keynote speech focusing on risk management and control measures for digital asset funds and tokenised funds. The seminar emphasised the importance of collaborative efforts within the fund industry to enhance both technical and regulatory compliance capabilities while encouraging the adoption of new technologies in fund management.
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### Understanding Risk Management in Digital Assets
Risk management is a foundational concept widely used by brokers and financial venues. It involves identifying potential risks in advance, analysing them, and undertaking precautionary steps to mitigate or prevent adverse outcomes. Effective risk management is vital for stability, especially in the finance industry where unforeseen events or crises can have significant repercussions.
Given the increasingly tightly regulated environment across all asset classes, robust risk controls are essential in managing the unique challenges posed by digital assets and tokenised financial products.
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### RMB Internationalisation and Hong Kong’s Role in Tokenised Financial Products
China is carefully adjusting its digital currency approach, allowing for limited issuance of fiat-referenced stablecoins aimed at supporting the international use of the renminbi (RMB). Despite strict mainland capital controls and the 2021 crypto ban, Hong Kong has emerged as a controlled testbed for innovation in this area.
On August 1, 2025, Hong Kong introduced a new licensing regime for stablecoin issuers, positioning the city as a hub for tokenised financial products. This regulatory framework highlights the delicate balance between fostering innovation and enforcing regulatory oversight, a balance that is reflected both in the recent SFC seminar and Beijing’s cautious stance on privately controlled stablecoins.
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### Background: What Are Stablecoins?
Unlike cryptocurrencies such as Bitcoin or Ethereum, stablecoins are designed to maintain a stable value. They appeal to investors who prefer reduced volatility compared to traditional cryptocurrencies. Stablecoins achieve this stability by being pegged to another cryptocurrency, fiat currency, or exchange-traded commodities, offering a more predictable investment vehicle.
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### Outlook
The recent pause by major Chinese firms indicates Beijing’s intent to maintain control over digital currency initiatives and limit private sector-led issuance. In contrast, Hong Kong continues to develop its regulatory framework to support the growth of tokenised financial products, serving as an important gateway for RMB internationalisation and digital asset innovation.
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**About the Author:**
Tareq Sikder is a Forex technical analyst and financial writer with over 12 years of experience in the industry.
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