Hong Kong’s Attorney General Zhang Guojun highlighted the city’s new Stablecoin licensing laws during his speech at the China and ASEAN Commercial Law Forum.
The legislation was featured in a September 18 presentation as part of Hong Kong’s efforts to support financial innovation while ensuring regulatory oversight in the digital assets sector.
Stablecoin ordinances and cryptocurrency monitoring
Guojun pointed out that Hong Kong passed the Stablecoin ordinance in August. The Act establishes a licensing system for Stablecoin issuers and requires compliance with financial protection measures and risk management measures.
He emphasized that the regulations are designed to balance financial innovation with investor protection. “We are promoting financial innovation by improving the regulatory framework of virtual asset activities and effectively managing risk,” Guojun told the delegation.
The new laws are consistent with global efforts to stabilize the cryptocurrency market. This is because more governments will introduce licensing rules for issuers of digital assets fixed in traditional currency.
For context, the US passed the Genius Act in July, making it the country’s first digital asset law. The Act requires one-on-one assistance with Stablecoins, publisher licenses, and strict reporting requirements. Other countries, particularly South Korea, have used the law to shape their own crypto regulations.
Related: The Effect of Genius: Korea is now quickly tracking its own crypto regulations
Hong Kong supports commercial banks tokenization
Guojun’s remarks came shortly after CEO John Lee announced that he would use his 2025 policy address to consolidate into mainstream banks, the next step in digital finance in Hong Kong.
Under the Hong Kong Monetary Authority’s Project Ensemble, commercial banks are encouraged to launch tokenized deposits and expand live tokenized asset transactions.
HKMA uses its regulatory sandbox to oversee product testing and risk management. Regular issuance of tokenized bonds, including green bonds, is also planned to increase liquidity and increase market access.
Related: Hong Kong supports the 2025 commercial bank tokenization initiative
Links to Belts and Road Development
In particular, Guo Jun connected Hong Kong’s crypto regulations to the broader Belt and Road Initiative (BRI). He noted that a safe and transparent financial environment supports trade, investment and infrastructure projects.
“The Belt and Road Initiative promotes economic and social progress among many countries,” he said. Guojun added that legal and financial stability is essential to the continued success of the initiative.
Legal system as strength in Hong Kong
Furthermore, the Deputy Secretary highlighted the Hong Kong common law framework as the main reason for global business trust. It is China’s only bilingual common law system. It is ranked worldwide first for its overall competitiveness and business rules for 2025.
According to Queen Mary University in London, Hong Kong is a major hub for dispute resolution and ranks second globally in arbitration in 2025. Thirty-three countries recently signed a treaty in Hong Kong, supporting international mediation.
Meanwhile, the city has launched an online platform to help small businesses resolve cross-border conflicts cost-effectively.
We are working with mainland China and ASEAN
Despite its independent legal system, Hong Kong maintains close legal ties with mainland China through nine agreements covering civil and commercial issues, including mutual recognition and enforcement of court decisions and the outcome of arbitration.
These agreements increase the predictability and stability of cross-border business between China, Hong Kong and the ASEAN economies.
Disclaimer: The information contained in this article is for information and educational purposes only. This article does not constitute any kind of financial advice or advice. Coin Edition is not liable for any losses that arise as a result of your use of the content, products or services mentioned. We encourage readers to take caution before taking any actions related to the company.
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