Hong Kong Financial Secretary: Stablecoins are not financial tools, regulatory guidelines must be clear.

On June 29, according to reports from the Hong Kong Economic Journal, the Secretary for Financial Services and the Treasury, Hui Chengyu, stated that digital assets are an inevitable trend, and stablecoins should be regarded as financial development tools to enhance financial efficiency, rather than for profit-making or speculative purposes. With the “Stablecoin Regulation” coming into effect, he emphasized that the government’s regulatory approach should be clear, requiring issuers to have sufficient capital or reserves, and to establish a stablecoin redemption mechanism to mitigate potential financial risks and safeguard monetary sovereignty.