MARKET BIT
HKMA Chief Yue is pleased by the interest but warns of risks.
Details
🔒 Few Licenses Granted: HKMA Governor Eddie Yue clarifies that at launch on August 1, only “a few” stablecoin licenses will be issued—even though around 40 firms are waiting in line.
🛡️ Strict Rules: Issuers must have a Hong Kong–registered company, at least HK$ 25 million in capital, and fully back every token with cash or ultra-short-term government bonds in the same currency.
🌐 Asian Alternative: While the new US GENIUS Act permits almost only dollar tokens, Hong Kong will also allow HKD or offshore renminbi stablecoins—ideal for Asia trade and Belt & Road projects.
Why It Matters
Stability over Bubble: Clear rules, tough penalties, and genuine redemption rights aim to prevent 2022-style speculation and build institutional trust.
Securing a Competitive Edge: By offering the first comprehensive stablecoin licensing in a top financial center, Hong Kong positions itself vs. Singapore, Dubai, etc., as a Web3 bridge between East and West.
Geo-Financial Leverage: Multi-peg stablecoins (HKD / USD / offshore RMB) could cut cross-border payment costs in emerging markets—and digitally fuel China’s Belt & Road Initiative.
What Are Stablecoins?
Stablecoins are cryptocurrencies backed 1:1 by reserves and pegged to a fiat currency like the dollar. They serve as digital cash for fast transactions, which is why regulators demand rigorous collateral and transparency standards.
👉🏻 Full story: Forbes, SCMP
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