Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
- Hong Kong is set up to start Stablecoin licensing by August 2025 with limited initial approval.
- Global leaders warn stablecoins may endanger monetary sovereignty if they are left unregulated.
Hong Kong is preparing to start his Stablecoin License framework already in August 2025.
According to Christopher Hui, secretary of financial services and the Ministry of Finance, only a limited number of licenses will be awarded at the beginning, probably in individual numbers.
Notes the same, in messageHui noted that stablecoins will serve “To address the difficulties and points of pain in the real economy”.
He explained that one of the most valuable cases of use is to improve cross -border payments, especially in regions with unstable local currencies or insufficiently developed financial systems.
In such areas, sending money across the boundaries may be slow, expensive and unreliable.
Hui further added,
“If there are stablecoins based on Fiat curls that serve as effective payment tools, they can facilitate cross -border transactions and reduce transaction costs.”
However, the approval of such chips would require close coordination with regulatory bodies in other risk management jurisdictions, such as volatility of exchange rate and systemic financial impact.
Not everything is linked to the dollar
Follow approval From the bill of Stablecoins, the Hong Kong Currency Office (HKMA) began a consultation on the proposal for supervision instructions.
The upcoming Directive will clarify the minimum standards according to the Stablecoins Regulation. These include full support and segregation of clients’ assets and require strict redemption duties for Stablecoin issuers.
Initially, the framework focused on Stablecoins, which weighed on the Hong Kong dollar. However, interest is growing in tokens supported at sea.
Chief companies like JD.com and Ant Group are reportedly looking for approval from Beijing.
In particular, Christopher Hui emphasized the key regulatory point. He said any Stablecoin of Yuan must be discussed with the relevant monetary authorities.
This is because it includes a currency of other jurisdiction.
Will he be able to compete with the US market?
Despite his growing efforts, Hong Kong faces significant global challenges in the Stablecoin plant, especially from the United States.
Currently, the US is dominated by the Stablecoins market, while the USDT and USDC represent the vast majority of uses across centralized and decentralized financial platforms.
This dominance is further strengthened by regulatory momentum.
The Genius ActThe Orientation Act on the American Stablecoin, recently passed the Senate with Bipartisan Support and now proceeds through the House of Representatives.
The aim of the bill is publicly supported by President Donald Trump and aimed to create a national regulatory framework for Stablecoins supported by Fiat.
Meanwhile, Hong Kong began to build its framework, but remains limited in extent and focuses primarily on supporting and issuing licenses in regional currency.
Therefore, Hong Kong must compete with geopolitical tensions, economic restrictions and structural restrictions globally, although it appears as a promising digital assets center in Asia.
