Hong Kong advances stablecoin regulation, strong rise of digital assets

With Hong Kong about to implement new stablecoin regulations, its financial landscape will undergo significant changes. It is reported that this regulation will officially take effect on August 1, 2025, marking an important step for Hong Kong in the regulation of digital assets.

The Financial Secretary, Paul Chan, recently revealed a striking set of data: last year, the total transaction volume of digital assets by local banks in Hong Kong reached 17.2 billion HKD. This figure not only reflects the vigorous development of the digital asset market but also highlights Hong Kong's position as a global financial center.

The new regulatory framework introduces a licensing system for stablecoin activities, aimed at creating a more transparent and regulated market environment. Notably, this regulation allows stablecoin issuers to anchor to multiple fiat currencies, rather than being limited to the Hong Kong dollar. This flexibility is expected to significantly enhance market liquidity and further strengthen Hong Kong's competitiveness on the international financial stage.

In an article titled "Accelerating Development, Seeking Progress While Maintaining Stability," Chen Maobo emphasized that the introduction of this regulation will bring new development opportunities for financial institutions. He stated that Hong Kong is committed to creating a structured regulatory environment to lay the foundation for the sustainable growth of the digital asset industry.

In fact, Hong Kong has been at the forefront of digital financial innovation. Since 2020, Hong Kong has taken the lead in launching a comprehensive virtual asset trading platform licensing system, setting a benchmark for the world. This forward-looking regulatory approach has not only attracted the attention of numerous international investors but also made an important contribution to consolidating Hong Kong's position as a fintech hub in Asia.

In the cryptocurrency market, Bitcoin (BTC) still holds a dominant position. According to the latest data from a certain data platform, the current price of Bitcoin is $105,894.24, with a market capitalization of up to $2.10 trillion, accounting for 63.74% of the entire market. Its 24-hour trading volume reached $38.2 billion, a year-on-year rise of 10.86%, fully reflecting the market's sustained strong interest in Bitcoin and active trading activities.

With the new stablecoin regulations about to be implemented, the industry generally believes that this will further promote the healthy development of Hong Kong's digital asset market. The clarity of regulation can not only enhance investor confidence but also attract more top global digital asset companies to settle in Hong Kong, thereby consolidating Hong Kong's position as an international financial center.

In this rapidly changing digital financial era, Hong Kong is actively shaping a new pattern of future finance with its unique advantages and forward-looking policies. With the continuous improvement of the regulatory framework and the ongoing maturation of the market, Hong Kong is expected to play a more significant role in the global digital asset ecosystem.