On February 11, Hong Kong’s Financial Secretary Paul Chan announced that the city is prepared to issue the first stablecoin licenses in March, marking the official transition of local stablecoin regulation into the practical implementation phase. This statement was made during a digital asset industry conference, sparking significant market attention on topics such as the “Hong Kong stablecoin regulatory framework” and the “prospects for compliant stablecoin issuance.”
Paul Chan pointed out that in the initial phase, only a limited number of licenses will be issued. Regulatory authorities will focus on whether applicants have clear use cases, sustainable business models, and comprehensive compliance and risk management systems. He emphasized that stablecoins are not merely payment tools but are important infrastructure connecting traditional finance with on-chain economies, requiring a balance between innovation and risk control.
In addition to stablecoins, Hong Kong is also finalizing the licensing regime for custodial service providers, with related legislation expected to be introduced this summer. This initiative will complement the existing digital asset regulatory framework, covering key areas such as issuance, trading, and custody, thereby building a more comprehensive compliant digital asset ecosystem.
Regarding industry trends, Paul Chan mentioned three accelerating directions: the continuous expansion of real-world asset tokenization, the deepening integration of decentralized finance (DeFi) with traditional finance, and the increasingly close combination of artificial intelligence and blockchain technology. Currently, traditional financial products like government bonds and money market funds are increasingly issued on-chain to improve settlement efficiency, support partial ownership, and enhance the liquidity of previously illiquid assets.
He also noted that as AI agents gradually gain autonomous decision-making and execution capabilities, a “machine economy” may emerge in the future. AI systems could hold and transfer digital assets on-chain, pay for services, and trade with each other. This concept is also seen as a potential key application scenario for stablecoins and blockchain infrastructure.
As the first batch of stablecoin licenses approaches, Hong Kong is further consolidating its leading position in digital asset regulation and innovation in Asia.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Vietnam Launches Licensed Cryptocurrency Exchange Pilot Program, 5 Enterprises Pass Initial Review
Vietnam plans to launch a pilot program for licensed cryptocurrency exchanges in March, restricting domestic users from trading on overseas platforms. Five enterprises have already passed the review. The pilot will run for 5 years, with limitations on the number of exchanges and foreign equity holdings. Violations in unauthorized trading will result in fines up to 100 million Vietnamese dong.
GateNews7m ago
Moody's Chief Economist: Continued Blockade of the Strait of Hormuz Would Make US Economic Recession Inevitable
Moody's economists warn that a blockade of the Strait of Hormuz would worsen the U.S. economic outlook, making recession difficult to avoid. The current recession probability has reached as high as 49% and is expected to exceed 50%. Unlike the past, the U.S. economy lacks post-pandemic stimulus support, employment data is weak, and future growth may be only 0.7%.
GateNews42m ago
Iran's Unmanned Aircraft Attacks UAE's Shah Gas Field, First Time Damaging the Country's Upstream Oil and Gas Facilities
On March 17, Iran conducted an unmanned drone attack on the UAE's Shah natural gas field, marking the first damage to its oil and gas facilities. Although gas field operations were suspended and there were no casualties, the incident escalated regional tensions. Meanwhile, U.S. President Trump called on allies to help reopen the Strait of Hormuz.
GateNews1h ago
Senate Schedules Review of Digital Asset Market Clarity Act, Stablecoin Yield Controversy Remains Unresolved
The Senate will initiate review of the Digital Asset Market Clarity Act, with discussions focusing on stablecoin yield controversies. Banks are concerned about potential deposit outflows, while crypto companies are wary of tightening regulations. The probability of the bill's passage has declined, with analysts warning that if review is not completed by April, it could impact the crypto market. Investors are closely monitoring policy changes and capital flows.
GateNews1h ago
DeFi Education Fund and Beba Withdraw SEC Airdrop Lawsuit, Crypto Regulatory Climate Shifts to More Lenient Stance
DeFi Education Fund and Beba have withdrawn their lawsuits against the SEC, reflecting that the SEC's cryptocurrency regulation is gradually becoming more relaxed under new leadership, particularly on airdrop policies. Industry insiders believe this will provide more legal certainty for DeFi projects, attract greater institutional participation, and will impact market sentiment and investment strategies in the crypto market.
GateNews1h ago
Institutional Capital Inflows Drive Bitcoin ETF Six Consecutive Days of Net Inflows, BTC Price Rises Over 12% During Period
On March 17, US Bitcoin ETFs achieved net inflows for six consecutive days, with total capital reaching $962.8 million, and Bitcoin price rose more than 12%. Analysts believe that geopolitical tensions and Bitcoin's safe-haven attributes have driven institutional demand, with the market maintaining attention on its future trajectory.
GateNews1h ago
