Hong Kong's Web3 development process is pressing the 'fast forward' button at a remarkable speed. Just as the market eagerly anticipates the stablecoin regulations effective from August 1, a significant message from the traditional financial sector has injected a shot of adrenaline into the city's digital asset ambitions.
Chinese brokerage giant Guotai Junan International announced that it has officially obtained approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing license, becoming the first Chinese brokerage in Hong Kong to offer comprehensive virtual asset-related trading services. Following the news, its stock price soared over 70% shortly after the opening, with the capital market expressing its optimistic expectation for the combination of 'compliance' and 'crypto' in the most direct way.
This is not just a license upgrade; it is a symbolic milestone that signifies the traditional financial power is accelerating and deeply integrating into Hong Kong's Web3 ecosystem. At the same time, according to sources closely cooperating with the Hong Kong government, the regulatory framework for stablecoins in Hong Kong has a grand vision that far exceeds market expectations, indicating that Hong Kong's goal may never have been just about HKD stablecoins.
The first 'full-service' licensed brokerage
The license upgrade approved for Guotai Junan International makes it one of the very few financial institutions in the market capable of providing one-stop virtual asset services. The so-called 'full service' means that the company has connected four core aspects of the virtual asset field:
Trading services: Clients can directly trade virtual assets such as cryptocurrencies (e.g., Bitcoin, Ethereum) and stablecoins (e.g., Tether) on their platform.
Issuance and distribution: Capable of issuing and distributing virtual asset-related products, including over-the-counter derivatives.
Investment advice: Can provide professional investment opinions on virtual assets for clients.
Asset management: Covers businesses such as virtual asset ETFs, futures brokerage, and over-the-counter derivatives.
From laying out the virtual asset ETF brokerage business in 2024 to now obtaining a complete trading and advisory license, Guotai Junan International's compliance layout has taken shape. This move is seen as a positive response to the Hong Kong SFC's promotion of international virtual asset center policies, and it means that investors will be able to safely and compliantly participate in the Web3 world through a strictly regulated traditional brokerage in the future. The landing of this license undoubtedly bridges traditional finance and Web3.
Three core thresholds for stablecoins
As breakthroughs are achieved in brokerage business, another shoe is about to drop in Hong Kong's stablecoin regulation. The stablecoin regulations will officially come into effect on August 1, and the Hong Kong Monetary Authority (HKMA) has set clear 'entry ticket' standards for institutions intending to issue stablecoins in Hong Kong.
The President of the Hong Kong Monetary Authority, Yu Weiwen, recently emphasized that the essence of stablecoins is to enhance payment efficiency, rather than being a speculative tool. Therefore, institutions applying for a license must meet three core thresholds:
1:1 fiat currency reserves and transparent redemption: Issuers must hold 100% equivalent, high-quality, and highly liquid legal currency reserves for the stablecoins they issue and ensure that users can redeem them at face value at any time to build user confidence and safeguard asset security.
Sufficient capital and compliance system: Applicants must demonstrate that they have at least HKD 25 million in their own capital (if the applicant is a 'recognized institution' such as a bank, they may be exempt) and establish comprehensive asset custody, risk management, and anti-money laundering (AML) processes.
Specific and sustainable application scenarios: Applicants must submit a specific and feasible business plan and demonstrate the actual application scenarios of their stablecoins. It is reported that the first phase will focus on cross-border trade and Web3-related applications.
It is worth noting that the Monetary Authority has clearly stated that initially it will adopt a prudent strategy and only issue 'a small number' of licenses to ensure the stability of the financial system. Currently, over 40 institutions are participating in the stablecoin regulatory sandbox program, including heavyweight players like JD Coin Chain Technology, Ant Group, Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications.
Stablecoins are no longer 'just HKD'
While the market generally believes that Hong Kong's new stablecoin regulations will mainly focus on 'HKD stablecoins', Xiao Feng, Chairman of the licensed exchange HashKey Group in Hong Kong, presented a disruptive viewpoint in an interview, revealing a broader vision for Hong Kong's regulatory framework.
Xiao Feng clearly pointed out that Hong Kong's stablecoin license 'is not limited to HKD stablecoins.' Approved issuers will have the option to choose multiple fiat currencies as the anchor for their stablecoins. This is crucial. It means that Hong Kong's goal is not merely to create a regional HKD stablecoin ecosystem but to become a global, multi-currency stablecoin issuance center. In the future, we may see stablecoins issued in Hong Kong that are anchored to offshore RMB (CNH), Japanese Yen (JPY), Euro (EUR), and even more currencies.
In addition, Xiao Feng revealed another detail that reflects Hong Kong's regulatory openness: issuers can freely choose the blockchain network for deploying their stablecoins. Whether it is a public chain like Ethereum or Solana, or the issuer's own consortium or private chain, the regulation maintains a neutral and flexible attitude towards the underlying technology.
This dual openness of 'multi-currency support' and 'technology neutrality' far exceeds the general expectations of the market and will undoubtedly inject unprecedented vitality into Hong Kong's digital asset market, attracting global issuers, developers, and capital.
'Firewall' and 'Testing Ground'
Hong Kong's various major actions in the Web3 field cannot be separated from its unique strategic positioning under 'one country, two systems'. Hong Kong's Financial Secretary Paul Chan has provided a profound explanation of this, summarizing Hong Kong's role as 'firewall' and 'testing ground'.
Firewall: Financial innovation, especially the risks in the field of crypto assets, can be effectively isolated and managed in Hong Kong to ensure that it does not transmit to the mainland financial system, serving a protective role.
Testing ground: Various new models and policies related to Web3 can be piloted in the internationalized soil of Hong Kong. Once the experiments succeed, their experiences and models can provide valuable references and lessons for future developments in the mainland.
The development of stablecoins is a perfect embodiment of this dual role. By establishing an open and regulated stablecoin ecosystem in Hong Kong, especially providing the possibility for the exploration of offshore RMB stablecoins, Hong Kong is paving a new digital path for RMB internationalization while consolidating its status as a global offshore RMB business hub.
Conclusion
From the landing of the first full-service brokerage license to the upcoming implementation of regulations supporting multi-currency stablecoins, Hong Kong is firmly and pragmatically declaring to the world its determination to build an 'international virtual asset center'. This is no longer a scattered layout but a set of interconnected and layered combination punches.
Hong Kong's ambitions clearly extend beyond becoming another cryptocurrency trading center. It aims to leverage its mature financial system, sound legal environment, and unique advantages of 'one country, two systems' to become a key hub connecting traditional finance with the digital economy, as well as the East with the West. This Web3 drama led by Hong Kong has only just begun.