Hong Kong has introduced Asia’s first stablecoin licensing regime, setting a new standard for digital currency regulation. The framework mandates full asset backing, strict AML compliance, and requires issuers to hold significant capital.

This move supports HKD-pegged stablecoins capable of 12-second cross-border settlements at minimal costs, reshaping payments and finance. The regulation covers the entire lifecycle of stablecoins, preventing regulatory evasion and fostering market trust.

Early market reactions show shifts in stablecoin dominance and growth in Hong Kong-based DeFi tokens. Hong Kong’s initiative integrates advanced blockchain infrastructure and regional strategies, marking a key milestone in blockchain-driven financial innovation.

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