Chinese tech giants pause stablecoin plans after Beijing steps in, FT reports
Oct 18 (Reuters) - Chinese tech giants, including Alibaba-backed Ant Group ( http://688688.SS/), opens new tab and e-commerce group http://JD.com/ ( http://9618.HK/), opens new tab, have paused plans to issue stablecoins in Hong Kong after the government raised concerns about the rise of currencies controlled by the private sector, the Financial Times reported on Saturday.
Companies have put their stablecoin ambitions on hold after receiving instructions from Chinese regulators, including the People’s Bank of China and Cyberspace Administration of China, not to move ahead with the plans, the FT reported, citing people familiar with the matter.
Hong Kong's legislature passed a stablecoin bill in May that established a licensing regime for fiat-referenced stablecoin issuers in Hong Kong, providing regulatory clarity for future participants.
Under the new regime, any person who issues stablecoins in Hong Kong - or issues stablecoins backed by Hong Kong dollars, whether within or outside the city - must obtain a licence from the Hong Kong Monetary Authority.
Ant Group said in June it would be participating in the pilot stablecoin programme. http://JD.com/ has also said it would take part in the pilot, according to the FT.
PBOC officials advised against participating in the initial rollout of stablecoins over concerns about allowing tech groups and brokerages to issue any type of currency, the FT report said.
Reuters could not immediately verify the report. Ant Group, JDG20 risk watchdog warns of 'significant gaps' in global crypto rules
PARIS/LONDON, Oct 16 (Reuters) - There are "significant gaps" in countries' attempts to regulate fast-growing crypto markets, which could potentially harm financial stability, the G20's risk watchdog warned on Thursday.
The Financial Stability Board (FSB), a body founded in the aftermath of the global financial crisis, made a series of recommendations on rules for crypto in 2023, to try to bring it in line with the mainstream financial sector.
In Thursday's review, it said while some progress had been made, international implementation and coordination of rules remained too "fragmented, inconsistent, and insufficient to address the global nature of crypto-asset markets".
Financial stability risks remain "limited at present" it assessed, but they are now rising with the surge in bitcoin and other cryptocurrencies having doubled the value of the global crypto market to $4 trillion over the last year.
"This is consequential," FSB secretary general John Schindler told Reuters, describing the concerns raised in the review. "These crypto assets can move across borders very easily, much more easily than other financial assets."com, PBOC and CAC did not respond to requests for comment.
A spokesperson for the HKMA told Reuters on Sunday in an email that it does not comment on market rumours.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually pegged to a fiat currency such as the U. S. dollar, are commonly used by crypto traders to move funds between tokens.
