Wu Jiezhuang: It is suggested that Hong Kong's stable currency can learn from the cross-border coordination experience of the EU MiCA

Odaily News Wu Jiezhuang, a member of the Hong Kong Legislative Council, posted on social media that "after years of hard work, the passage of the Stablecoin Ordinance marks the further improvement of Hong Kong's regulatory framework for crypto assets, and demonstrates Hong Kong's forward-looking approach in balancing financial innovation and risk control. As a regulator, the HKMA has a clear positioning of stablecoins - it is a payment tool rather than an investment product, and this definition helps the public to rationally understand its functional boundaries. The Ordinance is based on international standards and sets a high-threshold licensing system, emphasizing "substantial application scenarios" and "business sustainability", which can not only screen out compliant and capable issuers, but also avoid risks caused by overheating of the market. I think it is particularly worthy of recognition that the HKMA communicated regulatory expectations with the industry in advance through the "sandbox" and made it clear that it would not link sandbox participation with licenses, which reflects the rigor and transparency of approval. I believe that the future challenge is to effectively connect supervision with actual application scenarios. At present, the settlement of traditional financial systems and stablecoins is still in the adaptation period. In the future, the convenience, operability and prevention of financial risks of using stablecoins also need to be further broken through, so as to expand the influence of Hong Kong's compliant stablecoins. In addition, I also suggest that Hong Kong can learn from the EU MiCA Overall, this move lays the foundation for Hong Kong to consolidate its position as a fintech hub, but it is necessary to maintain a balance between promotion and risk warnings to ensure the steady development of the industry.”