Paul Chan Mo-po, the Financial Secretary of Hong Kong, has had a three-day business trip to Seoul to promote financial cooperation, especially in the areas of cryptocurrency and stablecoin regulation with South Korea.
This visit marks Hong Kong's efforts to become a regional financial innovation hub, focusing on developing a sustainable digital asset market and expanding multidimensional cooperation with partners in the Asian region.
MAIN CONTENT
The visit of the Financial Secretary of Hong Kong to Seoul aims to strengthen financial cooperation and attract investment from South Korea.
Hong Kong focuses on developing a legal framework for stablecoins and expanding the application of digital assets.
New regulations aim to create a reliable cryptocurrency market, suitable and promote sustainable financial innovation.
What is the purpose of the Financial Secretary's visit to Seoul?
Paul Chan Mo-po confirmed that the visit aimed to restore diplomatic and financial connections after the impacts of the pandemic and geopolitical tensions. He presented the progress in the development of digital assets in Hong Kong, particularly regarding stablecoin regulations, attracting significant interest from South Korean financial regulators.
A representative from Hong Kong stated that their stock market has attracted significant capital flows from South Korea, with transaction values exceeding 1.5 trillion HKD (approximately 191 billion USD) in the first five months of 2025, an increase of 2.8 times compared to the same period last year.
“This trip helps us to better realize the necessity of smooth communication and mutual understanding - the foundation for building trust and effective cooperation.”
Paul Chan Mo-po, Financial Secretary of Hong Kong, July 2025, Hong Kong Government
What innovative financial products is Hong Kong developing related to South Korea?
Hong Kong recently introduced new derivative financial products, including a “leveraged inverse” product linked to a listed technology company in South Korea. This product allows trading within Hong Kong, highlighting the creativity of the Hong Kong financial market.
The “super link” connection between Hong Kong and regional markets is considered very important by the Financial Secretary in promoting financial market connectivity, increasingly enhancing multilateral cooperation and expanding cross-border trading.
What legal and financial strengths of Hong Kong attract South Korean investors?
The One Country, Two Systems policy, a stable linked exchange rate, free capital flow, and a legal system based on common law are notable advantages attracting investors and bidders from South Korea.
These factors provide legal safety and a transparent business environment, thereby strengthening Hong Kong's position as a financial center in East Asia.
What plans does Hong Kong have for developing stablecoins and digital assets?
According to Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, the city is establishing regulations for 4 groups of digital assets including exchanges, stablecoin issuers, trading service providers, and custodians. The plan also includes reviewing laws to support smart contracts to enhance financial innovation capabilities.
The goal is to create a sustainable, reliable cryptocurrency market that can address real economic issues, particularly focusing on trading illiquid assets and expanding access thresholds consistent with a modern legal framework.
“Finance not only facilitates the smooth operation of the real economy but also positions Hong Kong as a place to create value and solutions for regional and global economic challenges.”
Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, July 2025
How have cryptocurrency exchanges in Hong Kong been licensed?
In the past three years, 11 cryptocurrency exchanges have been licensed by the Hong Kong Securities and Futures Commission, demonstrating the commitment to promoting the development of a tightly regulated cryptocurrency market that meets international standards.
Some examples illustrating the financial cooperation between Hong Kong and South Korea
Hong Kong - South Korea Factor Stock trading between both sides Over 1.5 trillion HKD (191 billion USD) in the first 5 months of 2025 Active investors participating in trading on the Hong Kong market Legal cryptocurrency 11 licensed exchanges, regulations on stablecoins and detailed digital assets Interested in the legal framework and new products Hong Kong is developing, especially derivatives related to technology companies Financial link Actively building a multinational financial connection network Proactively collaborating in innovative finance areas such as stablecoins, financial derivatives
Frequently Asked Questions
What does the Financial Secretary's visit to Seoul mean? The visit aims to strengthen financial cooperation and build trust between Hong Kong and South Korea, promoting the development of the digital asset market. What strengths does Hong Kong have in the cryptocurrency sector? Hong Kong has a clear legal framework, a transparent legal system, and a modern regulatory mechanism for digital assets and stablecoins. How are stablecoins developed and managed in Hong Kong? Hong Kong is building strict regulations for stablecoin issuers to ensure a sustainable, safe, and efficient market. How many cryptocurrency exchanges are currently licensed in Hong Kong? 11 cryptocurrency exchanges have been licensed in the past three years, reflecting a commitment to structured management. How do Hong Kong and South Korea cooperate in the new financial market? Both sides are developing innovative financial products, sharing knowledge about stablecoin and digital asset regulations, and expanding trading connections.
Source: https://tintucbitcoin.com/hong-kong-tang-cuong-hop-tac-tien-dien-tu/
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