Hong Kong Stablecoin Issuance Takes 'Baby Steps,' Emphasizes Strictly Payment Tool Not Investment Target

BlockBeats News, April 13th. Hong Kong Financial Secretary Paul Chan stated that Hong Kong is taking a "small-step-fast-walk" approach to stablecoin regulation, initially issuing a small number of licenses and requiring applicant institutions to have practical use cases. After implementation and experience summarization, the second batch of licenses will be issued.

He pointed out that stablecoins and digital assets are part of the financial innovation field, and a balance between development encouragement and risk prevention needs to be achieved, including the establishment of regulatory mechanisms such as anti-money laundering. At the same time, he emphasized that stablecoins have the advantages of decentralization and high efficiency but are fundamentally a payment tool rather than an investment tool.

In addition, Paul Chan mentioned that given the current international situation and security environment, Hong Kong needs to remain highly vigilant, achieving "active defense" through enhancing the competitiveness of the financial market and global influence. The government and financial institutions have now established a round-the-clock, cross-market monitoring system to ensure the smooth operation of the market.