Hong Kong will release a summary of stablecoin regulations next week, granting "several" licenses in the initial phase.

Hong Kong's pace in the regulation of virtual assets continues to accelerate. According to a report by Zhito Finance on July 23, the Hong Kong Monetary Authority will release a summary of the rules for stablecoin issuers next week. This move comes just before the official implementation of Hong Kong's Stablecoin Ordinance on August 1, 2025, providing clearer guidance for the market. However, Hong Kong Monetary Authority President Yu Weiwen also cautioned the market, reminding investors to stay calm amid excessive excitement about the stablecoin concept, and clearly stated that only "a few" stablecoin licenses will be granted in the initial stage, indicating that competition will be exceptionally fierce.

1. Hong Kong's Stablecoin Regulatory Progress: Summary of Rules to be Released Soon

The Hong Kong "Stablecoin Regulation" will take effect on August 1, 2025, requiring issuers to hold HKD 25 million in paid-up capital and fully reserve assets. The first batch of sandbox tests includes JD Coin Chain Technology, Circle Innovation Technology, etc., with single-digit licenses expected to be issued within the year. The Hong Kong Securities and Futures Commission has issued Virtual Asset Trading Platform (VATP) licenses to 11 platforms, and 42 brokers, including Guotai Junan International, have upgraded to license No. 1 to support virtual asset trading. Hong Kong is attracting global capital and businesses through a clear regulatory framework and innovative pilot programs, consolidating its position as an international virtual asset center.

The Chief Executive of the Monetary Authority, Yu Weiwen, spoke again about stablecoins. He pointed out that recently, with the hype surrounding the concept of stablecoins, there has been excessive euphoria in the market. Some listed companies, regardless of whether their main business is related to stablecoins or digital assets, as long as they claim to be interested in developing stablecoin business, it is like "turning stone into gold"; their stock prices immediately rise, trading volumes increase significantly, and the company's visibility is greatly enhanced.

II. The Monetary Authority Cools the Market: Scarcity of Licenses and Uncertainty in Profitability

Yu Weiwen stated: "In fact, we have made it clear earlier that in the initial stage, at most only a few stablecoin licenses will be granted. In other words, there will be many disappointed parties. Even if a license is obtained, considering our desire for steady development and the resource investment required in the early stages, there will be a certain level of uncertainty regarding the company's short-term profit contributions. We hope investors remain calm and think independently when digesting the market's 'positive' news." This statement clearly conveys the regulatory body's cautious attitude, reminding the market not to engage in blind speculation.

3. Market Dynamics: Aird Financial Approved for Money Laundering Case

Eddid Financial Approved for Digital Asset Access Services: On July 23, according to a report from PR Newswire, Eddid Financial announced that its subsidiary Eddid Securities and Futures has received approval from the Hong Kong Securities and Futures Commission to provide digital asset access services, laying the foundation for the group's further development of digital asset trading, including stablecoin and tokenized real-world asset (RWA) product distribution. The group's flagship trading application Eddid ONE will also be upgraded, allowing investors to directly access a variety of cryptocurrencies, including BTC, ETH, USDC, USDT, and USDT-TRC.

Hong Kong Customs cracks down on money laundering case: On July 22, news reports from Sing Tao Daily stated that Hong Kong Customs today uncovered a money laundering case involving the smuggling of cash and virtual assets, with an amount involved of approximately HKD 1.15 billion, and arrested a local man and a non-local man. It is reported that Hong Kong Customs personnel identified a 37-year-old local man and a 50-year-old non-local man and initiated a wealth investigation, discovering that the two smuggled cash out of the country and frequently and rapidly conducted large transactions in stablecoins and fiat currency with unknown funds, which were highly inconsistent with their backgrounds and financial situations, suspected of engaging in money laundering activities. This case once again highlights the importance of anti-money laundering (AML) and combating the financing of terrorism (CFT) in the context of the rapid development of cryptocurrencies.

IV. The Impact of Trump's "GENIUS Act"

The "GENIUS Act" signed by Trump further injects confidence into the global stablecoin market, boosting asset prices such as Ethereum. This also provides a positive external environment for the development of stablecoins in Hong Kong, despite the unique nature of Hong Kong's regulatory framework.

Conclusion:

The summary of the stablecoin regulations to be released in Hong Kong will provide clearer guidance for the market. The Monetary Authority's prudent attitude, along with reminders about the uncertainty of license quantities and profitability, aims to guide the market towards rational development. As more financial institutions are approved for digital asset-related services, while consolidating its position as an international virtual asset center, Hong Kong will also face challenges such as money laundering risks.