Hong Kong Advances Stablecoin Regulation, Digital Asset Volume Soars

On August 1, 2025, Hong Kong will welcome new stablecoin regulatory regulations, marking a significant transformation in the region's financial landscape. Financial Secretary Paul Chan recently revealed that, thanks to the booming development of digital assets, local banks' related transaction volume reached HKD 17.2 billion last year, demonstrating the important position of digital finance in Hong Kong's economy.

The new regulations have introduced a licensing system for stablecoin activities, aimed at creating a more regulated and favorable market environment. This initiative is expected to attract stablecoin issuers from around the world and significantly enhance market liquidity. It is noteworthy that the new regulations allow stablecoin issuers to peg to various fiat currencies, rather than being limited to the Hong Kong dollar, and this flexibility is expected to further strengthen Hong Kong's competitiveness as an international financial center.

In his article titled "Accelerated Development, Seeking Progress While Maintaining Stability," Chen Maobo emphasized that the regulatory measures aim to provide more development opportunities for financial institutions. He pointed out that the development of digital assets has a significant catalytic effect on the local financial industry, reflecting Hong Kong's strategic approach of "seeking progress while maintaining stability" in the field of digital finance.

In fact, Hong Kong has been at the forefront of global innovation in digital assets. Since 2020, Hong Kong has launched a comprehensive licensing system for virtual asset trading platforms, setting an international precedent. This move has established Hong Kong's leading position in the global digital finance landscape.

In the cryptocurrency market, Bitcoin (BTC) remains dominant. According to the latest data, the BTC price has reached $105,894.24, with a market cap of $2.10 trillion, accounting for 63.74% of the entire cryptocurrency market. Its 24-hour volume is $38.2 billion, a year-on-year increase of 10.86%, reflecting the market's ongoing enthusiasm and activity for Bitcoin.

As new stablecoin regulatory regulations are about to be implemented, Hong Kong is paving the way for the future development of digital assets. This will not only provide strong support for financial innovation but will also further consolidate Hong Kong's position as a leading global financial center. In the era of the digital economy, Hong Kong is gradually building a more open, secure, and prosperous digital financial ecosystem with a prudent yet proactive attitude.