Hong Kong Financial Secretary: Market demand for stablecoins is expected to further increase, and the Monetary Authority will handle license applications as soon as the relevant regulations come into effect

The Financial Secretary of Hong Kong, Paul Chan, stated that the "Stablecoin Ordinance" has been passed by the Legislative Council, establishing a licensing system for stablecoin issuers, which will take effect on August 1st and has become one of the focal points of recent market attention. It is estimated that the total market value of global stablecoins is approximately $240 billion, while the global trading volume of stablecoins exceeded $20 trillion last year. With the vigorous development of the digital asset market, the demand for stablecoins is expected to further increase. Currently, many market participants are very interested in this. After the ordinance takes effect, the Hong Kong Monetary Authority will promptly process the received license applications so that eligible applicants can commence their businesses. Hong Kong is cautiously advancing the development of stablecoins, providing a new paradigm for the global stablecoin market, and also reflecting Hong Kong's functions as a "firewall" and "testing ground," offering experience and reference for the country's financial development. According to the requirements, issuers must not only meet a series of risk management and anti-money laundering requirements but also present specific business justifications, such as application scenarios, explaining how their stablecoin business can practically address pain points in economic activities, closely aligning financial innovation with serving the real economy and promoting the sustainable development of the industry. (Securities Times)