Chinese tech giants, including Alibaba-backed Ant Group and e-commerce group JD.com, 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. 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, JD.com, PBOC, CAC and HKMA did not respond to requests for comment.

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.