The Hong Kong Monetary Authority will strictly control stablecoins: redemption must be completed within 24 hours, which is expected to facilitate cross-border payments under the Belt and Road Initiative.

2025-06-08 07:20:46

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On June 8, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, stated in an interview yesterday that the underlying asset of stablecoins is fiat currency, which can later be used for payment functions in the form of electronic assets through technologies such as Blockchain. The issuers of stablecoins are regulated by the Hong Kong Monetary Authority, and the main principles of regulation are similar to those of TradFi assets. Relevant issuers must comply with regulations regarding reserve asset management and redemption, including the proper segregation of client assets, and when a stablecoin holder requests redemption, it must be completed within one working day to meet user requirements.

Xu Zhengyu further stated that due to the payment characteristics of stablecoins, when services or projects are conducted in the “Belt and Road” region, and the local currency exchange rates are volatile or the financial system is not very mature, if local currency is used for payment, there will be certain risks. The other party can use stablecoins for payment purposes.

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