Hong Kong's stablecoin licensing adopts a "small steps, quick progress" approach, emphasizing that it is solely a payment tool and not an investment target

ME News message, April 13 (UTC+8), Hong Kong Financial Secretary Paul Chan Mo-po said that Hong Kong is adopting a “step-by-step” strategy in stablecoin regulation, issuing only a small number of licenses in the first batch and requiring applicant institutions to have real-world application scenarios. After the program is rolled out and begins operating, and experience is summarized, it will then move forward with the second batch of license approvals.

He noted that stablecoins and digital assets fall within the realm of financial innovation, and it is necessary to strike a balance between encouraging development and preventing risks, including establishing regulatory mechanisms such as anti-money laundering. He also emphasized that stablecoins have the advantages of decentralization and high efficiency, but in essence they are payment tools, not investment tools.

In addition, Paul Chan Mo-po said that given the current international situation and security environment, Hong Kong needs to remain highly vigilant and achieve “active defense” by enhancing the competitiveness and global influence of its financial markets. The government and financial institutions have already established an around-the-clock, cross-market monitoring system to ensure the stable operation of the market. (Source: Aastak Finance)