Hong Kong Financial Secretary: Market demand for stablecoins is expected to further increase. The Hong Kong Monetary Authority will process license applications as soon as relevant regulations come into effect

Recently, the topic of stablecoins has continued to heat up. In response, Hong Kong Financial Secretary Paul Chan stated that the "Stablecoins Ordinance" has been passed by the Legislative Council to establish a licensing system for stablecoin issuers, and will come into effect on August 1st, becoming one of the highly concerned focuses in the market recently. According to estimates, the total market value of global stablecoins is about 240 billion US dollars, while the global stablecoin trading volume exceeded 20 trillion US dollars last year. With the booming development of the digital asset market, the demand for stablecoins is expected to further increase. Currently, many market participants are very interested in this. After the regulation comes into effect, the Hong Kong Monetary Authority will process the license applications received as soon as possible, so that eligible applicants can carry out their business. Hong Kong is steadily promoting the development of stablecoins, providing a new paradigm for the global stablecoin market, and also reflecting the functions of Hong Kong as a "firewall" and "experimental field", providing experience and reference for the country's financial development. According to the requirements, the issuer must not only comply with a series of risk management and anti money laundering requirements, but also provide specific commercial justifications, such as application scenarios, to explain how its stablecoin business can effectively solve pain points in economic activities, closely serve the real economy through financial innovation, and promote the sustainable development of the industry. (People's Financial News)