Ping An Securities: Hong Kong May Adopt a Dual-track Regulatory Approach for Stablecoins

On July 23rd, Ping An Securities released a stablecoin report indicating that Hong Kong may establish a dual-track regulatory framework of "USD Stablecoins Connecting to the International Market + HKD Stablecoins Connecting to the Mainland." This not only reinforces the financial attributes of the Hong Kong Dollar but also offers an "experimental field" for the internationalization of the RMB. Hong Kong's definition of stablecoins is relatively extensive and not limited to a specific type of fiat-backed stablecoin. With the rapid development of the Hong Kong stablecoin market, it is expected that the market share of non-USD stablecoins will gradually increase, potentially driving the establishment of a unified international regulatory system in the future. Furthermore, the Ping An Securities report also mentioned that Hong Kong's regulatory scope for regulated stablecoin activities encompasses not only activities of issuing designated stablecoins in Hong Kong but also activities of issuing Hong Kong Dollar-anchored (or partially anchored) stablecoins outside of Hong Kong. China is actively deploying the stablecoin market, which can inject new impetus into the internationalization of the RMB and break the monopolistic position of USD stablecoins. (Hong Kong Wen Wei Po)