After years of effort, the passage of the "Stablecoin Regulation" marks further improvement of Hong Kong's regulatory framework for crypto assets, demonstrating Hong Kong's foresight in balancing financial innovation and risk management. As a regulator, the Monetary Authority has a clear positioning for stablecoins—they are a payment tool rather than an investment product. This definition helps the public rationally understand their functional boundaries.

The regulation is based on international standards, setting a high threshold for the licensing system, emphasizing "substantive application scenarios" and "business sustainability." This not only filters out compliant and capable issuers but also avoids market overheating that could trigger risks. I particularly commend the Monetary Authority for communicating regulatory expectations with the industry in advance through the "sandbox" and clearly stating that participation in the sandbox will not be linked to licensing, reflecting the rigor and transparency of the approval process.

I believe the future challenge lies in the effective connection between regulation and actual application scenarios. Currently, the traditional financial system and the settlement of stablecoins are still in an adaptation phase. Future breakthroughs are needed in the convenience, operability, and prevention of financial risks associated with stablecoins so that the influence of compliant stablecoins in Hong Kong can be expanded. Additionally, I suggest that Hong Kong can learn from the cross-border coordination experience of the EU's MiCA while continuously monitoring market changes and adjusting guidelines in a timely manner.

Overall, this move lays the foundation for Hong Kong to consolidate its position as a fintech hub, but it is necessary to maintain a balance between promotion and risk warnings to ensure the healthy development of the industry.