National Committee of the Chinese People's Political Consultative Conference Standing Committee member Yao Zhisheng: Hong Kong should build a global stablecoin issuance center to consolidate its position as a digital finance hub.

On August 26, Hong Kong media published an article by National Committee of the Chinese People's Political Consultative Conference Standing Committee member Yao Zhisheng titled "Focusing on Three Major Themes to Promote High-Quality Development in Hong Kong," which clearly pointed out that Hong Kong should leverage the advantages of "one country, two systems" to seize the high ground in the development of stablecoins and strive to build itself into a global stablecoin issuance center, further consolidating its position as an international financial center and the world's largest offshore RMB business hub.

Hong Kong's Stablecoin Regulation: The World's First Comprehensive Regulatory Framework

On August 1, 2025, the Hong Kong "Stablecoin Ordinance" officially comes into effect, becoming the world's first complete regulatory system for fiat stablecoins.

Issuance system: Any institution issuing fiat stablecoins or pegged to the Hong Kong dollar in Hong Kong must apply for a license from the Monetary Authority.

Admission requirements: Sound risk management, AML/CFT measures, technical security capabilities.

Reserve requirements: Assets must be held in a regulated custodial institution and regularly publish audit reports.

Application positioning: Initially focusing on cross-border trade payments to reduce individual investment risks.

Innovation Support: Establish a "stablecoin sandbox" program, with the first participants including JD's Coinchain Technology and Standard Chartered Bank.

How can retail investors legally hold stablecoins in Hong Kong?

Choose a licensed issuer: prioritize holding stablecoins authorized by the Monetary Authority (pegged to HKD or major fiat currencies)

Use a compliant platform: Trade through a regulated virtual asset trading platform (VASP)

Focus on utility and transparency: Review the issuer's reserve audit report to understand the use of the stablecoin.

Beware of cross-border risks: Pay attention to the differences between cross-chain technology and cross-border regulation.

Avoid high-risk products: Stay away from unlicensed stablecoins that promise "high returns".

Comparison of Regulations in Hong Kong, Singapore, and the United States

Hong Kong: Strict regulation + reserve transparency, supporting multi-chain issuance, focusing on RMB internationalization and cross-border trade

Singapore: Flexible and prudent, attracting international issuers such as Paxos and Circle, with active DeFi and payment applications.

United States: The market is mature but fragmented in regulation, with USDT and USDC having the largest market size, and conflicts between state and federal rules still exist.

Market Opportunities and Challenges

Opportunity:

Compliance stablecoin enhances market trust.

The global stablecoin market is growing rapidly.

Multichain technology reduces cross-border transaction costs.

Challenge:

High threshold limits the number of issuers

The differences in cross-border regulation increase compliance costs.

Technical and reserve management risks still need to be prevented.

Conclusion

Yao Zhisheng's proposal and the implementation of the "stablecoin regulations" have established a first-mover advantage for Hong Kong in the global digital finance competition. For retail investors, this means a safer and more transparent stablecoin investment environment, but it also requires greater compliance awareness and prudent selection. In the future, whether Hong Kong can truly become a global stablecoin issuance center will depend on regulatory enforcement, cross-border cooperation, and the speed of market innovation.