Xu Zhengyu: It is expected that some stablecoin licenses will be issued early next year, with priority given to sound reserve management, price stabil...

On December 19, according to the Hong Kong Economic Journal, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, stated at an event on Friday (19th) that as of the end of September this year, 36 applications for stablecoin licenses from various industries had been received. It is expected that some licenses will be issued early next year, with priority given to those with sound reserve management, price stability, and anti-money laundering measures. He pointed out that these measures not only protect investors but also reduce ambiguity that could lead to transaction conflicts by establishing a clear compliance path, thus helping to resolve potential disputes.

Hong Kong's stablecoin ordinance came into effect in August this year. A spokesperson for the Hong Kong Monetary Authority (HKMA) stated in October that the HKMA would review applications and approve them in accordance with the Stablecoin Ordinance and related regulatory requirements. The licensing application process has high thresholds, and only a few licenses will be issued in the first phase. Regarding the progress of the licensing system for virtual asset trading and custody service providers, Christopher Hui pointed out that they are working with the Securities and Futures Commission (SFC) to develop detailed licensing regulations, which are planned to be submitted to the Legislative Council for review next year. He emphasized that the regulatory framework will cover key aspects of the virtual asset industry, striving to achieve a balance between risk management and innovation. He reiterated that the Hong Kong government has "carefully formulated" various policies and measures to harmonize standards for Web 3.0 and digital assets, in order to protect investor rights, ensure clear and transparent regulation, and promote international alignment, thereby creating an environment that promotes innovation without compromising stability. Previously, the People's Bank of China stated last month that stablecoins pose a risk of being used for illegal activities, raising market concerns about whether this will affect Hong Kong's direction in promoting stablecoins.