Hong Kong Chief Executive promotes a new era of stablecoin regulation, with the first batch of licenses in March opening up the digital financial landscape

Hong Kong Chief Executive John Lee recently announced that the first batch of stablecoin issuer licenses will be launched in March, marking a significant step forward for Hong Kong in the regulation of digital assets. This policy stems from the formal implementation of the Stablecoin Ordinance, aiming to establish Hong Kong as a global digital asset hub and lay the foundation for cross-border digital financial applications. Currently, the Financial Authority has received applications from 36 institutions across various industries, reflecting strong market demand for compliant stablecoins.

Regulatory Framework Gradually Improving, Licensing Institutions’ Cross-Border Rules Clarified

While advancing the approval of the initial licenses, the Financial Authority has further clarified the cross-border business requirements for licensed institutions. All entities holding stablecoin issuer licenses must strictly adhere to local jurisdictional regulatory principles, meaning cross-border operations must comply with the legal obligations of different jurisdictions. This comprehensive regulatory framework not only provides clear operational guidance for compliant institutions but also sets entry barriers for substandard projects that do not meet standards, gradually promoting industry consolidation.

Differentiated Strategic Positioning, Hong Kong Focused on Empowering the Real Economy

From China’s macro strategic perspective, Hong Kong is leveraging the “one country, two systems” advantage to build a differentiated model of “prudential domestic regulation and compliant offshore innovation.” Under this framework, compliant stablecoins are gradually evolving into tools for tokenizing real assets (RWA) and facilitating cross-border financing and settlement. Enterprises can use stablecoins for cross-border asset financing and settlement. At the same time, this progress also accumulates valuable experience for the international application and promotion of digital renminbi, helping China gain greater influence in global digital finance competition.

Industry Ecosystem Accelerating Restructuring, Global Capital Flows into Hong Kong

Stablecoins, moving from the long-standing gray area into the sunlight, have broken the traditional “black box operation” phenomenon and established a new compliance benchmark of “regulation-first and bank-supported.” The scarcity of licenses will inevitably drive differentiation within the cryptocurrency industry, with large institutions and capital flocking to Hong Kong, while platforms lacking compliance credentials and risk management capabilities will gradually be phased out. This process will also promote the evolution of global cryptocurrency regulation toward greater coordination and refinement, leading to a more robust industry ecosystem.

The advancement of stablecoin compliance in Hong Kong not only reshapes the competitive landscape of digital assets in Asia but also signifies a new era where the cryptocurrency industry transitions from speculative concepts to institutional-led and real-asset integration.