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

Mars Finance News: Hong Kong Legislative Council member Wu Jiezhuang wrote: "After years of effort, the passage of the 'Stablecoin Regulation' marks a further improvement of Hong Kong's cryptocurrency asset regulatory framework, demonstrating Hong Kong's forward-thinking approach in balancing financial innovation and risk management. As a regulator, the Hong Kong Monetary Authority has a clear positioning for stablecoins - as a payment tool rather than an investment product, which helps the public rationally understand its functional boundaries. The regulation, based on international standards, sets a high threshold licensing system, emphasizing 'substantial application scenarios' and 'business sustainability', which can both screen out compliant and capable issuers and avoid market overheating risks. I particularly appreciate that the Monetary Authority communicates regulatory expectations with the industry through a 'sandbox' in advance and clearly states that sandbox participation will not be linked to licensing, reflecting the rigor and transparency of the approval process. I believe the future challenge is effectively connecting regulation with practical application scenarios. Currently, settlement between traditional financial systems and stablecoins is still in an adaptation period, and future breakthroughs in the convenience, operability, and financial risk prevention of stablecoin usage are needed to expand the influence of Hong Kong's compliant stablecoins. Additionally, I suggest that Hong Kong can learn from the EU's MiCA cross-border coordination experience while continuously monitoring market changes and adjusting guidelines accordingly. Overall, this lays the foundation for Hong Kong to consolidate its position as a financial technology hub, but it needs to maintain a balance between promotion and risk warnings to ensure healthy industry development."