Catenaa, Tuesday, June 24, 2025-Hong Kong is set to become a global leader in digital asset regulation as its upcoming stablecoin licensing regime is expected to take effect on August 1, providing the city with a strategic advantage in the intensifying race to regulate cryptocurrencies.
Paul Chan, Hong Kong’s financial secretary, told a forum Saturday that the new stablecoin bill, recently passed by the Legislative Council, will make Hong Kong one of the first jurisdictions to enact a statutory regulatory framework specifically for stablecoins.
The move aligns with China’s central bank policies, which highlight the growing impact of stablecoins and central bank digital currencies on cross-border payments.
Hong Kong already processes about 80% of global offshore yuan transactions, reinforcing its role as a key international renminbi hub.
Chan emphasized that strengthening this position is crucial for aligning with national development goals and enhancing the city’s financial future.
At the forum, e-commerce leader Jianguang Shen from JD.com suggested that stablecoins pegged to the offshore yuan could play a vital role in the next generation of international currency competition.
This idea has gained traction among local lawmakers and industry players, with initiatives underway including tests of Hong Kong dollar-pegged stablecoins by companies like JD Coinlink and plans by Ant Group to apply for stablecoin issuer licenses.
Hong Kong has also launched a sandbox for stablecoin issuers, attracting major participants such as Standard Chartered Bank and Animoca Brands, further cementing its position at the forefront of stablecoin innovation.
