August 11, 2025
By Anjali Kochhar
A dramatic policy rift is emerging across the Pearl River Delta as Beijing clamps down on stablecoin promotion while Hong Kong takes the opposite route by embracing regulated issuance of these digital tokens.
Mainland China has intensified its crackdown on stablecoin-related promotion, directing brokerage firms, think tanks, and research institutions to halt all seminars, publications, and public endorsements of these digital assets. The move, initiated in late July and early August 2025, reflects growing concerns over speculative hype, fraudulent schemes, and potential financial instability linked to stablecoins. Regulators in cities like Shenzhen have echoed the warnings, urging investors to be cautious about scams disguised as legitimate stablecoin projects.
In contrast, Hong Kong has moved forward with a new regulatory regime that allows the licensed issuance of fiat-referenced stablecoins. Under the “One Country, Two Systems” framework, the law was passed in May and came into effect on August 1, 2025. This makes Hong Kong one of the first jurisdictions in the world to formalize rules for stablecoin issuers.
The Hong Kong Monetary Authority plans to approve only a limited number of licenses, with the first issuances expected in early 2026. However, the legislation includes strict know-your-customer requirements, compelling issuers to verify the identity of every token holder. This has raised privacy concerns and fears that the rules could slow down adoption of regulated stablecoins.
The new framework has already attracted interest from major players in the finance and technology sectors. Standard Chartered, Animoca Brands, and HKT have formed a joint venture named Anchorpoint Financial, aiming to secure a stablecoin license. Meanwhile, Chinese tech giants such as JD.com and Ant Group are lobbying for the creation of renminbi-pegged stablecoins to advance China’s digital currency ambitions and compete with the dominance of US dollar-backed tokens.
While Beijing focuses on containing perceived risks and discouraging public enthusiasm for stablecoins, Hong Kong is positioning itself as a tightly regulated gateway for innovation in digital finance. The stark difference in strategy highlights two distinct approaches within the same nation’s economic sphere.
This divergence may shape the future of digital assets in the region, influencing investor sentiment, cross-border payment infrastructure, and the global perception of China’s role in the evolving digital currency landscape. One side seeks to tighten control and curb potential instability, while the other cautiously opens the door to innovation under watchful regulation.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
