Hong Kong is actively developing a new licensing framework for stablecoins, aiming to strengthen its position in the digital finance market.
Accelerating Stablecoin Licensing
Financial Secretary Paul Chan announced plans to fast-track the implementation of new stablecoin licensing rules set to take effect on August 1, 2025. This statement was made in a blog post on June 15, emphasizing the goal of increasing Hong Kong's influence in digital finance amid growing demand for stablecoins.
Open Regulatory Model
Chan highlighted that the new legislation will feature an 'open model', allowing issuers to peg their stablecoins to various fiat currencies, not just the US dollar. This is expected to attract a wider range of issuers and facilitate the development of innovative financial tools.
Global Interest in Stablecoins
In his post, Chan noted that the global market cap of stablecoins reaches $240 billion, with over $20 trillion in annual trading volume. He expressed hope that clear licensing rules would attract global institutions to issue stablecoins in Hong Kong, enhancing liquidity in the local market.
Thus, Hong Kong is ramping up efforts to create a favorable environment for the introduction of stablecoins, potentially positioning itself as a significant player in the digital asset market.
