Hong Kong is set to begin institutional adjustments to leap forward as a global stablecoin center. Starting from August 1st, it will implement a licensing system for stablecoin issuance and plans to allow stablecoins pegged not only to the US dollar but also to various currencies.
On the 15th (local time), Paul Chan, Hong Kong's Financial Secretary, stated on his blog that "Hong Kong will establish a clear regulatory framework to become a digital financial hub" and that "the key to this system is an 'open model' that allows the issuance of stablecoins based on various currencies".
Accordingly, the Hong Kong Monetary Authority (HKMA) will begin accepting license applications from August. Applying companies must meet strict standards including risk management capabilities, anti-money laundering (AML) systems, and practical use cases. Unlike the existing US-centered stablecoin market, Hong Kong's strategy is interpreted as nurturing digital assets based on Asian and other emerging market currencies.
Secretary Chan emphasized that "when a clear licensing system and simple procedures are established, global companies will issue stablecoins in Hong Kong" and that "this will increase liquidity in the digital asset market and further enhance Hong Kong's financial competitiveness".
This measure comes amid fierce digital asset hub competition with Singapore, Dubai, and others, drawing attention to potential shifts in the blockchain market's power dynamics surrounding Asian financial hegemony.
