Wu Jiezhuang: It is recommended that Hong Kong learn from the EU MiCA's cross-border coordination experience and continue to pay attention to market changes to adjust the guidelines in a timely manner

PANews reported on June 24 that Hong Kong Legislative Council member Wu Jiezhuang said that after years of efforts, the passage of the Stablecoin Ordinance in Hong Kong marks the further improvement of the regulatory framework for crypto assets and demonstrates Hong Kong's foresight in financial innovation and risk management. The HKMA clearly defines stablecoins as payment tools rather than investment products, which helps the public to rationally understand their functional boundaries.

The regulations are based on international standards, establish a high-threshold licensing system, and emphasize "substantial application scenarios" and "business sustainability" to screen out compliant and capable issuers while avoiding risks caused by overheating of the market. Wu Jiezhuang particularly praised the HKMA for communicating regulatory expectations with the industry in advance through the "sandbox" mechanism, and made it clear that participation in the sandbox is not linked to license approval, which reflects the rigor and transparency of the approval process.

He believes that the challenge in the future lies in effectively connecting supervision with actual application scenarios. At present, the traditional financial system and stablecoin settlement are still in the adaptation period. The convenience, operability and financial risk prevention of stablecoins still need further breakthroughs to expand the influence of Hong Kong's compliant stablecoins. In addition, he suggested that Hong Kong learn from the cross-border coordination experience of the EU MiCA and continue to pay attention to market changes to adjust the guidelines in a timely manner.