China's pause on stablecoin projects will not dampen Hong Kong's crypto push, experts say

Group 1 - Beijing's recent actions to regulate stablecoin and tokenisation initiatives by mainland Chinese firms in Hong Kong have created uncertainty in the local crypto sector, but the overall stance of the Chinese government towards digital assets remains open due to competition with the US [1][8] - The People's Bank of China (PBOC) has instructed several mainland firms, including banks and non-bank payment service providers, to await further guidance before proceeding with stablecoin projects in Hong Kong [2][4] - Chinese regulators have specifically advised major firms like Ant Group and JD.com to halt their stablecoin projects, reflecting a broader attempt to manage the rapid growth of stablecoins and real-world asset (RWA) tokenisation in Hong Kong [3][4] Group 2 - The Chinese securities watchdog has also recommended that mainland brokerages pause RWA projects in Hong Kong due to concerns about market overheating [5] - The guidance appears to target mainland-incorporated firms operating offshore and should not be interpreted as a complete rejection of Hong Kong's digital asset initiatives, according to industry experts [6] - Despite the regulatory pushback, there is still recognition of the significant role that crypto could play in China's competition with the US, as noted by industry leaders [8]