Hong Kong is set to implement the "stablecoin regulations" on August 1, laying out a new regulatory framework for the development of the stablecoin market. The President of the Hong Kong Monetary Authority, Yu Weiwen, recently delivered an important speech on this matter, outlining the strict requirements for stablecoin issuers and the future development direction for Hong Kong.

Yu Weiwen emphasized that Hong Kong has set high standards for the entry threshold for stablecoin issuers, and the level of regulation is almost comparable to that of electronic wallets and banking operations. This initiative aims to ensure the healthy and sustainable development of the stablecoin market.

Specifically, the Hong Kong Monetary Authority has established strict regulations in several areas:

1. Asset reserve management: Issuers are required to maintain sufficient and secure asset reserves.
2. Stability Mechanism: Ensuring the stability of the stablecoin's value.
3. Redemption Policy: Protecting the rights of holders.
4. Anti-Money Laundering Regulations: Preventing the Risk of Financial Crime.

Yu Weiwen expects that in the initial stage of the implementation of the Stablecoin Regulations, the Hong Kong Monetary Authority may only issue a limited number of licenses. These licensed stablecoins are expected to be used for specific purposes, such as promoting cross-border trade.

It is worth noting that Hong Kong's regulatory framework for stablecoins fully takes into account their payment attributes. Eddie Yue said that the Stablecoin Ordinance provides a comprehensive regulatory framework for issuers, aiming to ensure that the principle of 'same risk, same regulation' is implemented, thereby promoting the healthy development of the industry.

This strict regulatory attitude reflects Hong Kong's high emphasis on risk prevention while embracing financial innovation. With the implementation of the Stablecoin Regulation, Hong Kong is expected to occupy a more important position in the global digital finance field, setting a new benchmark for the standardized development of the stablecoin market.