Hong Kong's Legislative Council has passed the Stablecoins Bill, establishing a licensing regime for fiat-backed stablecoin issuers, with the new rules set to take effect on August 1. The move has drawn significant market attention as the city solidifies its position as a digital asset hub.
Christopher Hui, Secretary for Financial Services and the Treasury, emphasized in a televised interview today (June 29) that digital assets represent an inevitable trend in finance. "Stablecoins are not tools for wealth generation but instruments for financial development," he stated.
Hui highlighted the efficiency benefits of stablecoins, noting that while traditional financial activities rely on intermediaries, stablecoins operating on blockchain technology can enhance transaction speed and overall economic productivity.
Addressing concerns that stablecoins might undermine international monetary sovereignty, Hui assured that the government is fully aware of the risks. The regulatory framework mandates that issuers maintain sufficient capital reserves and adhere to strict redemption timelines, ensuring users can reliably convert stablecoins back to fiat currency.
The ordinance marks a key step in Hong Kong's broader strategy to integrate digital assets into its financial ecosystem while maintaining robust oversight. Market participants are now preparing for compliance as the implementation date approaches.
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