Beijing is reportedly considering imposing restrictions on Chinese companies seeking to participate in stablecoin projects in Hong Kong. The potential measure would affect banks, state-owned enterprises, and major tech firms that had shown interest in the city’s stablecoin licensing regime, effective since August 1, 2025. The goal would be to prevent the transfer of crypto-related risks to the mainland market, safeguarding financial stability and reinforcing centralized regulatory control.
Impact on the financial sector
More than 40 firms, including HSBC and ICBC, expressed interest in obtaining licenses under Hong Kong’s new regulatory framework; some sources raise the figure to 77 institutions. An industry executive warned that these players might be forced to delay or withdraw their applications in light of Beijing’s potential restrictions, creating uncertainty in the pace of adoption.
Meanwhile, the Hong Kong Monetary Authority (HKMA) is reportedly considering easing capital requirements for banks holding crypto assets. The aim would be to facilitate the circulation of regulated stablecoins within the city’s financial ecosystem, strengthening its appeal as an international financial hub.
Recent commercial moves
The regulatory momentum in Hong Kong coincides with new business initiatives:
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A subsidiary of China Merchants Bank launched an institutional crypto exchange.
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JD.com and Ant Financial registered entities linked to stablecoins in Hong Kong and Singapore.
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Development is underway for yuan-backed stablecoins designed for international use, such as Conflux’s “offshore” issuances, explicitly excluded from the mainland market but showing a regional expansion focus.
Market consequences
The restriction on mainland firms could have several effects on Hong Kong’s stablecoin market:
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Temporary reduction in competition among license applicants, impacting issuer diversity and initial liquidity.
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Delays in projects integrating stablecoins with banking and payment infrastructures.
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Greater need for compliance and regulatory coordination to ensure transparency.
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Acceleration of “offshore” yuan issuances in alternative jurisdictions, driving the search for more flexible regulatory environments.
Future outlook
Beijing’s decision on possible restrictions and the HKMA’s stance on bank capital requirements will be crucial in the coming months. For product and compliance teams, the situation implies greater operational complexity and strategic challenges, while for institutional investors it could affect liquidity, confidence, and the competitive pricing structure during the market’s early phase.
