Hong Kong Stablecoin Bill: Bringing Multiple Benefits to the Cryptocurrency Sector 

On May 21, 2025, the Legislative Council of the Hong Kong Special Administrative Region passed the "Stablecoin Regulation Draft," which is of great significance to the cryptocurrency sector and brings multiple benefits.

From a local perspective, on one hand, the bill strengthens Hong Kong's position as a global digital asset hub. Clear regulatory standards, such as a capital registration threshold of HKD 25 million and a 1:1 reserve asset peg, provide a transparent and compliant environment for the stablecoin market, attracting investors and businesses from around the world. The Hong Kong Monetary Authority plans to open license applications by the end of the year, which will accelerate the development and application of Hong Kong Dollar stablecoins, enhancing Hong Kong's competitiveness in the cross-border payment sector.

On the other hand, the bill promotes financial innovation and technological development. It provides clear compliance paths for stablecoin issuers, encouraging businesses to innovate within the regulatory framework. The "regulatory sandbox" mechanism reduces compliance costs for startups, benefiting the application of blockchain technology in payments and promoting the development of the Web3 ecosystem.

At the same time, a comprehensive regulatory system enhances market confidence and investor protection. Measures such as the mandatory 1:1 reserve asset requirement can prevent stablecoins from decoupling and enhance market trust.

For mainland China, Hong Kong's regulatory model provides a reference for the mainland, and its "regulatory sandbox" mechanism may inspire pilot explorations in the application of blockchain technology in the mainland. Additionally, it helps promote the internationalization of the Renminbi, providing compliant channels for mainland enterprises to issue Renminbi-pegged stablecoins. It can also facilitate the collaborative development of financial technology in the Guangdong-Hong Kong-Macau Greater Bay Area, as Hong Kong Dollar stablecoins can complement digital Renminbi to serve cross-border payment needs. #币安HODLer空投BARD #币安HODLer空投AVNT $ETH $ETH