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
The central banks of Korea and France hold a seminar to discuss digital assets and climate change issues
Gate News message, on April 7, the Bank of Korea and the Banque de France held a seminar to discuss issues related to digital assets and climate change.
GateNews40m ago
Bitcoin, ether, solana hold steady as Trump sets Tuesday night deadline for Iran deal
Bitcoin dipped to $68,589 after a brief rally fueled by ceasefire news, as geopolitical tensions persist. Other cryptocurrencies also fell. Market uncertainty continues, with Bitcoin trading within the $65,000 to $73,000 range, awaiting Trump's deadline for Iran negotiations.
CoinDesk1h ago
Global central banks exploit crypto infrastructure at low cost, mBridge uses an Ethereum-based architecture
The global cryptocurrency market fell sharply between 2021 and 2022, while central banks in various countries began to use blockchain infrastructure developed by the private sector—such as the BIS’s mBridge project—without having to bear development costs. This model has sparked controversy, because when central banks adopt technology that has already undergone deep validation by the private sector, it may erode incentives for private-sector innovation and affect future financial venture investments.
MarketWhisper3h ago
Several Korean financial institutions are piloting stablecoin payments through foreign users, laying the groundwork for infrastructure in advance
Due to delays in the legislation of the Digital Asset Basic Act, several financial institutions in South Korea have launched stablecoin payment services for foreign users, building infrastructure. Industry analysis says that such services are like a “regulatory sandbox,” helping companies validate their business models.
GateNews3h ago
Tom Lee has released a post-war asset ranking, with Ethereum outperforming the broader market to win second place.
Tom Lee said on CNBC that since the start of geopolitical conflicts, Ethereum has outperformed the broader market, posting a gain of more than 8% and ranking second globally. Wartime fiscal spending is expected to grow, which will provide support for the market. BitMine recently holds more than 4.8 million Ether—equivalent to more than 4.8 million Ethereum—showing bullish confidence and strategy.
MarketWhisper4h ago
Gate Daily Report (April 7): SEC submits crypto “safe harbor” proposal to the White House; Argentina president and LIBRA call records exposed
Bitcoin gives back its gains on April 7, trading at $68,800. A U.S. SEC “safe harbor” proposal for crypto has been submitted for review by the White House. Argentina’s President Milei has been accused of having multiple calls with LIBRA’s founder, sparking a scandal. Bitcoin’s market volatility is high; it’s advised to control leverage to prevent large-scale liquidations.
MarketWhisper4h ago
