TechFlow reports that Jason Jiang, Senior Researcher at OKG Research, recently wrote in Wu Shuo Blockchain that Hong Kong is among the first jurisdictions globally to regulate stablecoins. Compared with regulatory frameworks in the EU, Japan, and Singapore, Hong Kong's approach, while stricter in certain aspects such as financial resource requirements, maintains considerable flexibility and openness. It seeks to balance effective investor protection with providing ample room for innovation by potential issuers, ensuring both regulatory effectiveness and leadership.
However, despite adjustments in the consultation conclusions regarding financial resource requirements for issuers, significant capital pressure remains for many small and medium-sized institutions. Stablecoin issuers must maintain full reserves at all times, posing higher demands on corporate capital management and liquidity. According to Jason, beyond compliance costs and technical challenges, use cases may become the biggest hurdle for issuers. Without sufficient real-world applications, and merely replicating existing USD-pegged stablecoin business models, Hong Kong-based stablecoins may struggle to establish a competitive edge.
