In July 2025, a statement by Hong Kong's Secretary for Financial Services and the Treasury, Xu Zhengyu, drew the attention of the global financial community back to the East. With the (Stablecoin Regulation) officially taking effect on August 1, Hong Kong will become the world's first international financial center to regulate stablecoin issuance through legislation. This policy not only signifies a shift from chaotic growth to compliant development in the cryptocurrency sector but also indicates that China has taken a key step in its strategic layout in the field of digital currency.
Strict regulation and high openness coexist; the stablecoin regulatory framework launched by Hong Kong can be described as a dance with shackles:
Capital Threshold: Issuers must have a paid-in capital of no less than 25 million HKD, reserve assets must be 100% tied to fiat currencies such as the Hong Kong dollar and renminbi, and must be custodied by licensed banks in Hong Kong.
Technical Red Lines: Algorithmic stablecoins and collateralized crypto assets are explicitly prohibited; only fiat-pegged stablecoins are allowed to participate in the market, thereby avoiding systemic risks from the source.
Upgraded Anti-Money Laundering: Issuers are required to establish a comprehensive monitoring system covering customer identity verification, transaction tracking, and suspicious behavior alerts; violators will face 7 years in prison and fines of 5 million HKD.
It is noteworthy that Hong Kong has not shut the door on innovation. The Monetary Authority reserves the right for dynamic confirmation, and in the future, it may include new types of stablecoins based on technological developments, leaving space for blockchain technology innovation. This model of strict regulation + flexible innovation not only demonstrates Hong Kong's determination to maintain financial stability but also conveys an open attitude towards embracing the digital economy.
Market Volatility: Who will rewrite the rules of the game?
1. Restructuring of the Cryptocurrency Ecosystem: Compliant players thrive, while non-compliant players perish.
Traditional Financial Giants: Banks such as HSBC and Standard Chartered have leveraged their compliance advantages to successfully develop stablecoin clearing systems through the Monetary Authority's 'sandbox' testing, and are expected to become some of the first licensed institutions.
Cross-Border Payment Companies: Institutions like Lakala and JD, relying on 5 million smart POS terminals and plans to go public in Hong Kong, are seen as strong competitors for licenses. Their cross-border payment solutions, when combined with stablecoins, could reduce fees from the traditional wire transfer rate of 5% to 0.1%, enhancing efficiency by dozens of times.
Crypto-Native Projects: International stablecoins like USDT and USDC may exit the Hong Kong market due to high regulatory costs, but can enter through partnerships with licensed institutions.
2. Cross-Border Trade Revolution: From Sky-High Fees to Instant Settlement
The case of a Shenzhen electronics factory paying a supplier in Vietnam is highly representative: Traditional wire transfers take 3 days to arrive with a fee of 5%; if using Hong Kong dollar stablecoins, settlement can be completed in 10 seconds at a cost of only 0.1%. The global annual trading volume of stablecoins exceeds $35 trillion, and Hong Kong's policies will accelerate the transfer of this market to the Asia-Pacific region, with emerging market merchants in Southeast Asia and Africa potentially becoming the biggest winners.
3. Internationalization of the Renminbi: A Breakthrough Battle in the Digital Age
Hong Kong's stablecoin policy links with mainland digital Hong Kong dollar + plan: Hong Kong dollar stablecoins can be directly exchanged for offshore renminbi, creating a digital bridge that bypasses the US dollar settlement system. This layout not only strengthens Hong Kong's role as a super connector but is also seen as a breakthrough for the internationalization of the renminbi in the digital domain.
Three Major Opportunities:
Licensed Concept Stocks: Companies like Lakala (expected net profit of 2.8 billion in 2026) and Beijing Northern (first stock of digital Macanese patacas) may see a period of explosive stock price growth.
Technical Service Providers: Demand for blockchain security, compliance auditing, and cross-border clearing systems is surging, with JD's FINNOSafe platform already verified by the Monetary Authority.
Scenario Innovators: Focus on stablecoin solutions in collaboration with cross-border e-commerce platforms like Shein and Temu, where fee income could potentially surge tenfold.
Two Major Risks:
Regulatory Uncertainty: Global regulation of stablecoins is tightening, and if Hong Kong's policy conflicts with that of the United States (GENIUS Act), it could trigger market volatility.
Technical Security Vulnerabilities: Smart contract flaws and private key management errors could lead to the theft of reserve assets, requiring issuers to invest heavily in building security systems.
Future Scenario: Can Hong Kong lead a new order in digital finance?
Hong Kong's fiat-pegged + flexible regulatory model not only avoids the complex classifications of the EU's MiCA but also binds the renminbi more aggressively than Singapore. If successfully implemented, it may drive three major trends:
Diversification of Stablecoin Scenarios: Expanding from cross-border payments to real asset tokenization (RWA), digital renminbi complementary tools, and other fields.
Regulatory Technology Explosion: Real-time asset reserve monitoring and AI anti-money laundering systems become compliance standards.
New Variables in Geopolitics: Hong Kong's stablecoin may become the digital front line in the financial competition between China and the United States, affecting the reconstruction of the global monetary system.
Lao Zhao believes that the landing of Hong Kong's stablecoin license is not only a technological revolution but also a struggle for financial sovereignty and rule-making power. For investors, it is an unprecedented digital gold rush; for the country, it is an excellent opportunity for the internationalization of the renminbi to overtake the curve. In 2025, Hong Kong will have pressed the button to start a new era of compliance, and the ripples of this transformation will ultimately converge into a giant wave that changes the global financial landscape.#香港稳定币条例 $BTC $ETH
