Introduction to Stablecoin Regulation in Hong Kong
As the launch date for the new “Stablecoin Regulation” in Hong Kong approaches on August 1st, a wave of interest has emerged with numerous companies indicating plans to either apply for or engage in stablecoin-related activities.
Insights from Norman Chan
Norman Chan, who oversees the Hong Kong Monetary Authority (HKMA) as its Chairman and also leads the international operations at Standard Chartered, emphasized during the organization’s annual report meeting that the role of stablecoins should not be tied to speculative trading.
“The digitization of asset markets represents a crucial long-term objective and that stablecoins ought to contribute to market stability rather than short-term profit-seeking.”
Chan is confident that Hong Kong is positioned alongside the world’s top financial hubs in terms of development pace. He noted that while the HKMA will begin accepting applications from stablecoin issuers in August, this marks just one facet of the broader digitization effort within the financial sector.
Future Outlook
Looking ahead, Chan predicts a gradual shift towards the tokenization of various asset types, although he cautioned that achieving a fully “tokenized” financial landscape will not happen overnight and requires careful consideration and time.
