Wu Jiezhuang: Settlement between traditional finance and stablecoins is still in the adaptation period. It is recommended that Hong Kong learn from the EU MiCA cross-border coordination experience

Odaily Planet Daily News: Hong Kong Legislative Council member Wu Jiezhuang wrote: "After years of hard work, the passage of the Stablecoin Ordinance marks the further improvement of Hong Kong's crypto asset regulatory framework and demonstrates Hong Kong, China's forward-looking approach in balancing financial innovation and risk control. As a regulator, the HKMA has a clear positioning of stablecoins - it is a payment tool rather than an investment product. This definition helps the public to rationally understand its functional boundaries. The regulations are based on international standards and set a high-threshold licensing system, emphasizing "substantial application scenarios" and "business sustainability", which can not only screen out compliant and capable issuers, but also avoid market overheating and risks. I think it is particularly worthy of recognition that the HKMA communicated regulatory expectations with the industry in advance through the "sandbox" and made it clear that it would not link sandbox participation with licenses, which reflects the rigor and transparency of approval. I believe that the future challenge is the effective connection between supervision and actual application scenarios. At present, the settlement of traditional financial systems and stablecoins is still in the adaptation period. In the future, the convenience, operability and prevention of financial risks of using stablecoins also need further breakthroughs, so as to expand the influence of Hong Kong's compliant stablecoins. In addition, I also suggest that Hong Kong can learn from the EU MiCA Overall, this move lays the foundation for Hong Kong to consolidate its position as a fintech hub, but it is necessary to maintain a balance between promotion and risk warnings to ensure the steady development of the industry.”