The Securities and Futures Commission participated in a seminar organised by the Association of Fund Administrators of Hong Kong and the Greater Bay Area last week. The event aimed to raise awareness of regulatory compliance standards in the digital asset sector. Meanwhile, Chinese technology firms, including Ant Group and JD. com, have paused plans to issue stablecoins in Hong Kong following concerns from Beijing regulators over privately controlled digital currencies. Digital assets meet tradfi in London at the fmls25The People’s Bank of China and the Cyberspace Administration of China reportedly instructed the companies to halt initiatives, highlighting mainland authorities’ caution amid Hong Kong’s growing stablecoin and tokenization efforts. Collaboration Focused on Tokenised Fund ManagementEric Yip, the SFC’s Executive Director of Intermediaries, delivered a keynote speech to over 150 participants, including fund and digital asset professionals, as well as legal and compliance experts. The seminar covered risk management and control measures for digital asset funds and tokenised funds. Discussions emphasised the need for collaborative efforts within the fund industry to enhance technical and regulatory compliance capabilities and to adopt new technologies in fund management. RMB Internationalisation Drives Hong Kong Tokenized Product PlansChina is adjusting its approach to digital currencies by allowing limited room for fiat-referenced stablecoins to support the international use of the renminbi (RMB). In case you are wondering about cross-border RMB settlement amount (blue), this has clearly been rapidly increasing in the past few yrs. Trading (orange) settlement has also been increasingly settled in RMB due to the fear that Chinese financial system could face SWIFT sanction pic. twitter. com/X2imA2G8cp- tphuang (@tphuang) October 12, 2025Amid strict mainland capital controls and the 2021 crypto ban, Hong Kong has become a controlled testbed, introducing a licensing regime for stablecoin issuers on August 1, 2025. The framework positions the city as a hub for tokenized financial products, highlighting the careful balance between innovation and regulatory oversight in which both the SFC seminar and Beijing’s caution over private stablecoins are taking place. This article was written by Tareq Sikder at www. financemagnates. com.