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

ME News. On April 13 (UTC+8), Paul Chan Mo-po, the Financial Secretary of the Hong Kong Special Administrative Region, said that Hong Kong is taking a “small steps, quick progress” approach to stablecoin regulation. In the first batch, only a small number of licenses will be issued, and applicants are required to have practical use cases. After the rollout and operations are in place and experience is summarized, Hong Kong will then move forward with the second batch of licensing.

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. At the same time, he emphasized that stablecoins have the advantages of decentralization and high efficiency, but in essence they are payment tools rather than investment tools.

In addition, Paul Chan Mo-po said that amid the current international situation and security environment, Hong Kong needs to stay highly vigilant and achieve “active defense” by enhancing the competitiveness and global influence of its financial markets. The government and financial institutions have already put in place a 24/7, cross-market monitoring system to ensure the stable operation of the market. (Source: Asdaq Finance)