Spain Halts Worldcoin Project Over Data Privacy Concerns

Monetary Sovereignty Takes Priority Over Hong Kong’s Web3 Ambitions

According to the Financial Times, the suspension of stablecoin projects by Ant Group and JD.COM is part of Beijing’s broader dual-track strategy. The Chinese government seeks to limit the growth of private digital currencies that could compete with the state-backed digital yuan (e-CNY). At the same time, China is strengthening control over key strategic resources like rare earth minerals to counter U.S. dominance.

Hong Kong has positioned itself as a leading Web3 hub in Asia, launching pilot programs for stablecoin issuance and asset tokenization since August 2025. However, the suspension of projects from major mainland tech firms reveals the true limits of Hong Kong’s regulatory autonomy when it comes to national monetary policy.

Why Beijing Is Tightening Control Over Stablecoins

The main reason behind Beijing’s crackdown is to protect its principle of monetary sovereignty. Privately issued stablecoins, especially those pegged to the offshore yuan (CNH), could weaken the influence of the official e-CNY, which has already been tested by hundreds of millions of users across mainland China.

Reports suggest that the China Securities Regulatory Commission (CSRC) has also instructed local brokerages to halt certain real-world asset (RWA) tokenization projects in Hong Kong. This signals a broader regulatory tightening that extends beyond stablecoins, potentially reshaping the entire digital asset landscape in the region.

China’s Dual Monetary Strategy: Rare Earths and e-CNY

Macroeconomic analysts argue that China’s domestic clampdown on private digital currencies is closely linked to its global monetary strategy. While restricting private stablecoins at home, Beijing leverages its near-monopoly on rare earth minerals abroad as a form of economic and geopolitical leverage.

Economist Luke Gromen notes that China’s tightening control over rare earth exports aims to weaken the technological backbone of the U.S. military-industrial complex, indirectly challenging the dominance of the U.S. dollar. Domestically, Beijing preserves monetary stability through centralized control of the e-CNY, while globally it uses strategic resources to influence the balance of power in the digital economy.

Implications for Global Web3 Companies

Beijing’s intervention sends a clear signal to global Web3 firms looking to operate in Asia: innovation is only tolerated when it aligns with national strategic interests. Projects that fail to integrate with the e-CNY ecosystem or support China’s digital infrastructure may face regulatory hurdles or outright suspension.

The decentralized ideals of Web3 stand in direct conflict with China’s centralized governance model. Companies in Hong Kong are now likely to face heightened scrutiny, restricting the scope of tokenization and limiting acceptable forms of digital payment. For international blockchain firms, the message is unmistakable — access to China’s massive consumer base comes with strict compliance requirements.

Conclusion: A Reality Check for Global Web3 Ambitions

The suspension of stablecoin projects by Ant Group and JD.COM illustrates that China’s monetary sovereignty is non-negotiable. Any Web3 company seeking to engage with the mainland market must fully comply with government regulations and operate within a framework that prioritizes state control.

For the global blockchain community, this is a stark reminder that innovation in China can only thrive when it aligns with national interests. Decentralization may be the future of finance elsewhere, but in China, centralization remains the cornerstone of stability and policy execution.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.