Hong Kong’s Stablecoin Momentum Takes a Hit as China’s Anti-Crypto Hammer Falls Again

Hong Kong's recent efforts to establish a regulated stablecoin regime, intended to open a path to the greater China market, have been significantly undermined. The People's Bank of China (PBOC) reiterated its stance that stablecoins are illegal under China's existing crypto ban, stating they lack the legal status of fiat currency and cannot be used as legal tender. This clarification dashed hopes for looser rules, particularly after major firms like JD.com and Ant Group lobbied for yuan-backed stablecoins in Hong Kong. Consequently, Hong Kong-listed crypto stocks experienced sharp declines on Monday morning. This situation presents a strategic dilemma for Hong Kong: its largest potential market remains legally inaccessible due to Beijing's strict enforcement, threatening the viability of its developing crypto ecosystem.

(Source：CCN)