The Hong Kong "Stablecoin Ordinance" will come into effect on August 1, 2025.

As a global financial center, Hong Kong is also actively incorporating stablecoins into its regulatory system. As early as May 21, Hong Kong passed the Stablecoin Bill. On 6 June, the Hong Kong government issued the Stablecoins Ordinance (Commencement Date) Notice, proposing 1 August this year as the date for the commencement of the Stablecoins Ordinance (Cap. 656) (the Ordinance).

The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, has stated that the licensing system will provide clear regulatory guidance for stablecoin activities, helping Hong Kong explore financial innovation under compliance and consolidate its position as an international financial center. As the effective date approaches, relevant market participants will gradually implement the regulatory requirements, and Hong Kong's stablecoin regulatory framework will enter a substantive operational phase.

The "Stablecoin Regulation" not only defines the scope of stablecoins but also explicitly states that the regulatory scope includes the issuance of stablecoins pegged to the Hong Kong dollar and conducting stablecoin-related business with Hong Kong residents. The "Stablecoin Regulation" implements a licensing system for stablecoin businesses, and relevant companies must meet certain conditions to obtain a license to engage in stablecoin operations. At the operational level, the policy clearly requires the establishment of relevant positions, and if a company violates related regulations, it will face penalties.

Before the introduction of the "stablecoin regulations", the Hong Kong Monetary Authority launched a stablecoin sandbox program in 2024. The so-called sandbox is a security mechanism in the field of computer security that provides an isolated environment for program execution, allowing for technical testing in a controlled environment. In the fintech sector, regulators have promoted the regulatory sandbox system, enabling authorized companies to innovate in technology and products within a controlled environment.

In July 2024, a number of companies entered the Hong Kong Stablecoin Sandbox Program, including: JD Coin Technology ( Hong Kong ) Limited, Yuanbi Innovation Technology Co., Ltd., Standard Chartered Bank ( Hong Kong ) Limited, Anxi Group Limited and Hong Kong Telecommunications (HKT) Limited (HKT).

These companies are divided into three groups, among which Standard Chartered Bank, Anni Group, and Hong Kong Telecommunications jointly developed the stablecoin HKDG pegged to the Hong Kong dollar, Yuan Coin Innovation Technology developed the stablecoin HKDR, and JD Coin Chain Technology developed the stablecoin JD-HKD.

JD Coin Chain Technology has announced the latest progress of JD stablecoin, which has entered the second phase of sandbox testing. At this stage, JD Coin Chain Technology will focus on mobile and computer products, including retail payment, cross-border payment and investment transactions.

With the Hong Kong "Stablecoin Regulation" coming into effect on August 1, some A-share listed companies capable of participating in Hong Kong's stablecoin business are expected to expand their innovative operations.

Do you remember the pilot program for personal RMB services launched in Hong Kong in 2003?

It was that pilot program that laid the institutional foundation for the cross-border trade settlement of the renminbi in 2009. Today, Hong Kong stands once again at the watershed of renminbi internationalization. The CNH stablecoin may become the next breakthrough in digital finance, ushering in the 2.0 era of the "Hong Kong experience."

The core experience of the successful pilot back then was the "regulatory closed loop + market transmission" mechanism: the mainland used Bank of China Hong Kong as a clearing hub to transmit regulatory requirements to the Hong Kong banking system in the form of commercial agreements, which respected market autonomy while ensuring system safety. This layered regulatory framework may provide a practical reference for today's stablecoin experiments.

Currently, the "stablecoin regulations" reserve policy space for non-Hong Kong dollar fiat currencies such as the Renminbi to be included as pegged currencies through flexible provisions, but specific implementation requires case-by-case approval from the monetary authority, and currently only the issuance of Hong Kong dollar stablecoins is subject to mandatory regulation. Hong Kong is exploring the integration of RTGS (real-time gross settlement) systems with on-chain settlement, and its "regulatory sandbox + tiered opening" model consolidates the innovation advantages of digital currencies through controllable trial and error.

If the CNH stablecoin is regarded as an institutional incision for the internationalization of the RMB, it is not only possible to supplement the CIPS (Cross-border Payment System for Renminbi), but also to build a RMB channel independent of the SWIFT (International Fund Clearing System) system. In the technological race of global payment networks, Hong Kong is trying to build a digital "outlet to the sea" for the renminbi.