Xu Zhengyu: Hong Kong-regulated stablecoin expected to be launched first in the middle of the year.

The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, Christopher Hui, stated that the regulatory framework for stablecoins in Hong Kong is steadily progressing, with two licensed stablecoin issuers currently in the preparation stage before formal operation. According to regulatory requirements, related institutions need to complete technical platform and system testing, and implement various risk management measures, including asset reserve management, asset security, currency stability mechanisms, redemption arrangements, and network security. Hui pointed out that the Hong Kong Monetary Authority continues to maintain close communication with licensed issuers to ensure that all preparations are carried out in an orderly and prudent manner. Based on the current business plans of the two institutions, the first batch of regulated stablecoins in Hong Kong is expected to be launched in the first half of this year, marking an important step for Hong Kong in the field of digital assets and financial innovation. At the same time, the Monetary Authority has also proactively engaged in further communication and coordination with other stablecoin license applicants to prepare for the subsequent review process. Hui emphasized that, based on the applicants meeting the basic entry requirements of the Stablecoin Ordinance, the Monetary Authority will adopt unified and strict standards for review to ensure healthy and orderly market development. Specifically, regulators will assess applicants from three key aspects. Firstly, examining whether they can build application scenarios with real value that can drive the development of the entire industry ecosystem; secondly, evaluating whether they have a robust and sustainable business operation model, as well as corresponding risk management capabilities and industry experience; and thirdly, scrutinizing their ability to comply with Hong Kong and other relevant jurisdictional laws and regulations.