TechFlow news, June 24 — Hong Kong Legislative Council member Ng Kit-chi stated on social media, "After years of effort, the passage of the Stablecoin Ordinance marks a further improvement in Hong Kong's crypto asset regulatory framework, demonstrating Hong Kong's foresight in balancing financial innovation with risk management. As regulators, the HKMA has clearly defined stablecoins—not as investment products but as payment tools. This definition helps the public rationally understand their functional boundaries.
The ordinance, based on international standards, establishes a high-threshold licensing regime emphasizing 'genuine use cases' and 'business sustainability,' effectively filtering for compliant and capable issuers while preventing market overheating and associated risks. I particularly appreciate that the HKMA engaged industry stakeholders early through a 'sandbox' to communicate regulatory expectations, and explicitly clarified that sandbox participation would not be linked to licensing outcomes—demonstrating rigor and transparency in the approval process.
I believe the future challenge lies in effectively connecting regulation with real-world applications. Currently, settlement between traditional financial systems and stablecoins remains in an adjustment phase. Further breakthroughs are needed regarding the convenience, operability, and financial risk prevention of stablecoin usage to expand the influence of Hong Kong-compliant stablecoins. Additionally, I suggest Hong Kong draw on the EU’s MiCA experience in cross-border coordination, while continuously monitoring market developments and adjusting guidelines accordingly.
Overall, this move lays the foundation for Hong Kong to consolidate its position as a fintech hub. However, balance must be maintained between promotion and risk warnings to ensure robust industry development."
