Hong Kong Showcases New Stablecoin Licensing Law at China-ASEAN Forum

Zhang Guojun, deputy secretary of Hong Kong for Justice, emphasised the brand new Stablecoin Licensing Legislation of town throughout a speech on the China-ASEAN Industrial Legislation Discussion board.

The legislation may very well be seen in a presentation on 18 September as a part of Hong Kong’s efforts to assist monetary innovation and on the identical time to oversee the digital property sector.

Stablecoin regulation and cryptocurrency supervision

Guojun famous that Hong Kong adopted the Stablecoin Regulation in August. The laws attracts up a licensing system for Stablecoin -Emitents, for which compliance with monetary ensures and danger administration measures is required.

He emphasised that the Regulation was designed to stability monetary innovation with investor safety. “By bettering the authorized framework for digital property actions and successfully managing dangers, we promote monetary innovation,” Guojun informed delegates.

The brand new legislation corresponds to world efforts to stabilize cryptocurrency ranks, as a result of extra governments introduce license guidelines for problems with digital property which can be linked to conventional foreign money.

For the context, the US accepted the Genius Act in July, making it the primary digital property legislation within the nation. The legislation requires 1-on-1 assist for stablecoins, licenses for emennials and strict reporting necessities. Specifically, different nations, together with South Korea, have been drawn to this legislation to form their very own crypto directions.

Associated: The Genius Act Impact: South Korea is now accelerated its personal crypto laws

Hong Kong helps business bankingization

Guojun’s feedback got here shortly after Chief Govt John Lee used the coverage deal with of 2025 to announce the subsequent step of Hong Kong in digital funds: integrating tokenization in mainstream banking.

Below the Challenge Semble of the Hong Kong Financial Authority, business banks might be inspired to launch tokenized deposits and to develop reside tokenized-asset transactions.

The HKMA will use its regulatory sandbox to oversee product assessments and danger administration. Common subject of tokenized bonds, together with inexperienced bonds, can be deliberate to enhance liquidity and to broaden market entry.

Associated: Hong Kong to assist business bankingization -initiatives within the 2025 coverage

Hyperlink to belt and street improvement

Specifically, Guojun linked the Crypto directions by Hong Kong with the broader Belt and Street Initiative (BRI). He famous {that a} secure and clear monetary setting helps business, funding and infrastructure tasks.

“It calls and street Initiative has promoted financial improvement and social progress amongst many nations,” he mentioned. Guojun added that authorized and monetary stability is of important significance for the continual success of the initiative.

Hong Kong’s authorized system as energy

Furthermore, the deputy secretary emphasised the Widespread Legislation -Framework of Hong Kong as an necessary cause for worldwide enterprise belief. It’s the solely bilingual (Chinese language-English) Widespread Legislation system in China. It’s in third place worldwide for the overall competitiveness and the primary for firm guidelines in 2025.

Hong Kong stays a number one hub for dispute decision and ranks secondally for arbitration in 2025, in response to Queen Mary College of London. Thirty -three nations lately signed a treaty in Hong Kong to assist worldwide mediation.

Within the meantime, town has launched a web-based platform to assist small and medium -sized corporations to rearrange cross -border disputes price -effective.

Working with mainland China and Asean

Regardless of his unbiased authorized system, Hong Kong maintains shut authorized ties with mainland China via 9 agreements that cowl civil and business issues, together with mutual recognition and enforcement of judicial judgments and arbitration outcomes.

These agreements provide extra predictability and stability for cross-border corporations between China, Hong Kong and Asean economies.