Hong Kong stablecoin regulatory policies attract follow

Recently, multiple regulatory departments in the Hong Kong Special Administrative Region have frequently stated that stablecoins are not tools for making money or speculation, but should return to their original intention of helping the real economy and improving the efficiency of capital circulation. These statements aim to emphasize that the development of stablecoins is still in the exploratory stage, involving multi-level institutional building, and should be advanced with caution.

Hong Kong is working to align stablecoin regulation with the compliance framework of traditional finance. As the world's first comprehensive regulatory framework for fiat stablecoins, the "Stablecoin Ordinance" will take effect on August 1, at which point the Hong Kong Monetary Authority will begin accepting license applications.

The President of the Hong Kong Monetary Authority stated that given the emerging nature of stablecoins, the associated risks, and the market capacity, the initial licensing will set a higher threshold, with only a few licenses expected to be issued. This is seen as "expectation management" for the market's eager anticipation. Currently, at least 9 institutions have expressed their intention to apply for licenses.

The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government stated that they are striving to issue the first batch of licenses within this year. However, the licensing timeline is still affected by multiple factors, such as the Hong Kong Monetary Authority seeking opinions on the implementation details of the "Regulations," which involve requirements related to anti-money laundering.

In terms of application scenarios, cross-border payment is one of the main potential uses of stablecoin. However, the relevant policies are not yet fully clear, and there are still uncertainties regarding issues such as whether to allow the issuance of stablecoins pegged to the Renminbi.

Overall, the Hong Kong regulatory authorities hope that the industry will be more rational, focusing on the application of stablecoin around the demands of the real economy, rather than blindly issuing coins. This reflects Hong Kong's original intention to promote the development of stablecoins, which is to explore innovation under prudent regulation. The future direction of policies and market development is still worth following.