The licensing system for stablecoin issuers in Hong Kong is designed to promote practical applications and address challenges in the real economy.

According to Paul Chan, Director of the Hong Kong Financial Services and Treasury Bureau, the new regulations on reserve asset management, stabilization mechanisms, and redemption processes will enhance the safety and efficiency of stablecoins.

MAIN CONTENT

  • The licensing system helps develop stablecoin applications in the real economy.

  • Strict requirements for reserve asset management and risk governance.

  • Encouraging contributions to allow the government to test licensed stablecoins.

What role does the stablecoin licensing system in Hong Kong play?

Paul Chan affirms that this system will support the development of practical applications for stablecoins and address pain points in the traditional economy. With extensive experience in financial management, Hong Kong aims to create a transparent and robust stablecoin market.

Licensing helps control quality, enhance trust for investors and users, and facilitate the adoption of stablecoins in payments and daily transactions.

What specific regulations apply to stablecoin issuers?

To ensure transparency and stability, strict requirements for reserve asset management, value maintenance mechanisms, and redemption processes are set. Paul Chan stated that reserve assets must not be lower than the redeemable value at any time and can only be held in high-quality, liquid assets.

This helps to minimize risks for users and maintain the stability of stablecoins, thereby promoting the sustainable development of this market.

We hope that the licensing system will facilitate stablecoins to become a useful financial solution while protecting the rights of consumers and investors.
Paul Chan, Director of the Hong Kong Financial Services and Treasury Bureau, 5/7/2025

What plans does the Hong Kong government have to promote the adoption of stablecoins?

Hong Kong authorities are open to proposals from the market to find ways for the government to pioneer the testing and use of licensed stablecoins. This is a strategic step to ensure relevance and effectiveness in practical applications.

Direct testing helps draw lessons, timely adjust regulations, and ensure that stablecoins operate safely and reliably in the local financial environment.

The licensed stablecoin experiment will help us better understand the challenges and opportunities of applying this digital asset in the real economy.
Paul Chan, Director of the Hong Kong Financial Services and Treasury Bureau, 5/7/2025

Comparing stablecoin management requirements in Hong Kong with other markets

Criteria Hong Kong Singapore Switzerland Reserve asset requirement High-quality, highly liquid assets, reserve value ≥ redeemable value Similar recommendations but more flexible Requirements for transparency and regular audits Stabilization mechanism Clear stabilization mechanism requirement, risk management Requirement but not mandatory Prioritize transparent digital models Government testing Actively testing licensed stablecoins in the economy Support development but with little intervention Support DeFi and Token applications

Frequently Asked Questions

How does the stablecoin licensing system benefit users? It ensures safety, stability, and transparency in the issuance and use of stablecoins, reducing financial risks for users. (Source: Hong Kong Financial Services, 2025) What are the reserve asset requirements for stablecoin issuers? Reserve assets must always be sufficient in value for redemption and held in high-quality, highly liquid assets. What plans does the government have to promote stablecoins? Promote licensed stablecoin testing and encourage participation in proposals to improve the legal system. How do regulations in Hong Kong differ from those in Singapore and Switzerland? Hong Kong has stricter requirements and actively tests stablecoins in the real economy. Where can stablecoins be applied in the real economy? Payments, financial transactions, and DeFi applications, helping to increase liquidity and reduce transaction costs.

Source: https://tintucbitcoin.com/stablecoin-hk-chi-dung-tai-san-chat/

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