Under the regulatory framework in Hong Kong, it is now legal to issue stablecoins pegged to the Hong Kong dollar. Recently, Yat Siu, the founder of venture capital and gaming brand Animoca Brands, publicly shared his insights on the changes brought about by stablecoins.
Digital Hong Kong dollar: Different from the USD system, niche market
Yat Siu emphasized the unique advantages of the Hong Kong dollar, pointing out its relationship with the USD. He explained that the Hong Kong dollar stablecoin is both linked to the USD and different from it, providing an alternative demand for those seeking regulation. “The Hong Kong dollar can serve as an interesting alternative,” he stated.
Hong Kong has launched a stablecoin sandbox project
The Hong Kong Monetary Authority (HKMA) introduced a sandbox project in March this year, providing a regulatory guide for issuers who are genuinely willing and prepared to issue fiat-backed stablecoins in Hong Kong. Through the sandbox project, the HKMA collects feedback on proposed regulatory requirements from participants, aiming to ensure that the upcoming regulatory framework achieves regulatory goals without excessively hindering industry development.
Hong Kong version of spot Bitcoin ETF to be launched soon, Asia to become Web3 hub
Yat Siu also discussed the development of ETFs in Hong Kong, particularly the expected approval of spot Bitcoin ETFs. This could not only enhance Web3 investment in Hong Kong but also potentially allow Hong Kong to lead in diversified ETF supply compared to the United States. Yat Siu believes that this demonstrates Hong Kong’s clearer regulatory framework for Ethereum spot ETFs and GamFi tokens.
Due to regulatory challenges brought by the United States, Yat Siu predicts that Asia will become the center of Web3 innovation in the near to medium term. He stated that Web3 will be an Asian narrative because of the more flexible regulatory environment here.
Animoca Brands
ETF
Yat Siu
Digital Hong Kong dollar
Stablecoins
Hong Kong
Further reading
Hong Kong Monetary Authority releases CBDC white paper, discusses feasibility of retail application for e-HKD
Hong Kong Monetary Authority’s “Fintech 2025” strategy: Digital Hong Kong dollar, blockchain credit data, sandbox review