Hong Kong Set to Welcome Quasi-Stablecoin Firms as Regulatory Framework Nears Launch

Liu Kaixuan, Director-General of Invest Hong Kong, revealed that several quasi-stablecoin operators are actively negotiating with financial teams about launching operations in the city. These discussions come as Hong Kong prepares to implement its new Stablecoin Ordinance in the coming month, marking a significant regulatory milestone for the region’s digital asset ecosystem.Liu emphasized that the fintech sector places strong importance on the development of stablecoins, citing their potential to boost trade, diversify global currency use, and attract new investment. With Hong Kong's regulatory environment for stablecoins considered among the most forward-looking in Asia, the city is positioning itself as a key hub for digital finance innovation.Over the past two and a half years, Hong Kong has attracted 630 enterprises from mainland China, representing around 48% of total new business registrations. Liu noted that as national policies encourage Chinese enterprises to expand internationally, Hong Kong remains a natural springboard for outbound growth.On trade dynamics, Liu acknowledged concerns over U.S. tariffs but reaffirmed Hong Kong's free port status. She highlighted that business communities from ASEAN and Europe are shifting focus away from the U.S., urging diversification into new markets — with Asia and Greater China remaining the fastest-growing regions. Hong Kong’s role as a two-way platform gives it a strategic advantage in capturing this momentum.Addressing corporate taxation, Liu noted that Hong Kong’s 16.5% corporate tax rate is slightly above the 15% global minimum standard but has had minimal impact on business attractiveness. Since the company relocation mechanism came into effect, at least two insurance firms have moved their operations to Hong Kong — further underscoring confidence in the city’s economic outlook.With the new stablecoin legislation set to take effect soon, Hong Kong could see an influx of digital currency-related firms establishing a presence, bolstering its ambition to become a leading global fintech and Web3 hub.