Core Viewpoint - The article highlights the risks associated with stablecoins, emphasizing the need for public awareness and caution against illegal financial activities disguised as stablecoin investments [3][4][6]. Group 1: Risks of Stablecoins - The Shenzhen Special Task Force warns that illegal organizations are exploiting the public's lack of understanding of stablecoins to engage in fraudulent activities, including illegal fundraising, gambling, and money laundering [3][4]. - The Task Force emphasizes that these organizations lack the necessary licenses from national financial authorities and are not authorized to publicly solicit deposits [3][4]. - The article stresses the importance of rational investment awareness among the public to avoid falling victim to deceptive promises related to stablecoin investments [3][4]. Group 2: Regulatory Responses - Multiple regulatory bodies and international financial organizations have issued risk warnings regarding the recent surge in interest in stablecoins [6]. - The Hong Kong Monetary Authority's CEO, Yu Weiwen, indicates that while public interest in stablecoins is welcomed, it is essential to maintain a balanced perspective and mitigate potential risks [6][7]. - The article notes that stablecoins are not intended for investment or speculation but serve as payment tools utilizing blockchain technology, with their future development largely dependent on market forces [7]. Group 3: International Concerns - The Bank for International Settlements (BIS) expresses skepticism about stablecoins, stating they do not meet the requirements to be a pillar of the monetary system and raise concerns about their potential use in money laundering and terrorism financing [8]. - The BIS report highlights that stablecoins have become a preferred method for illegal activities due to their anonymity and lack of traditional financial safeguards like Know Your Customer (KYC) standards [8]. - The report concludes that while demand for stablecoins may persist, they perform poorly in system-level integrity tests, raising significant regulatory challenges [8].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) will begin accepting license applications for stablecoins starting August 1, under the new Stablecoin Regulation, with a limited number of licenses expected to be issued initially [1][2]. Group 1: Regulation and Licensing - The HKMA is currently consulting the market to establish specific guidelines for the implementation of the Stablecoin Regulation [1]. - The issuance of stablecoin licenses will have high thresholds due to the emerging nature of stablecoins and associated risks, with only a few licenses anticipated in the initial phase [3]. - The regulation follows the principle of "same activity, same risk, same regulation," aligning with international regulatory requirements while addressing local conditions [2]. Group 2: Market Sentiment and Education - HKMA's CEO, Eddie Yue, expressed the need for a calm and objective perspective on stablecoins, emphasizing that they are not investment or speculative tools but payment instruments utilizing blockchain technology [1]. - There has been a surge in interest and various analyses regarding stablecoins, driven by their potential applications and strategic significance [1]. Group 3: International Cooperation and Risk Management - The HKMA is actively involved in international regulatory organizations, including the Financial Stability Board (FSB), which has released a global regulatory framework for crypto asset activities [2]. - The unique characteristics of stablecoins, such as anonymity and ease of cross-border use, pose challenges for risk management, particularly in anti-money laundering [2]. - Establishing cross-border regulatory cooperation is essential for fostering a healthy and orderly development of stablecoins globally while mitigating financial risks [2].

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) emphasizes the need for a cautious and objective approach towards stablecoins, highlighting the importance of regulatory measures and the high standards for issuing licenses [1][4]. Summary by Sections Definition and Purpose of Stablecoins - Stablecoins are defined as virtual assets aimed at maintaining a relatively stable value against certain assets, typically currencies, such as the HK Dollar stablecoin (HKDR) which is pegged 1:1 to the HKD [3]. - They are not considered investment or speculative tools but rather payment instruments utilizing blockchain technology, lacking appreciation potential [3]. Regulatory Framework and Licensing - The HKMA plans to issue only a limited number of licenses initially, with a focus on applicants having real application scenarios [5][7]. - The first batch of sandbox participants included three issuers, and entry into the sandbox does not guarantee future licensing [6][8]. - The licensing process will be stringent, considering the risks associated with stablecoin issuance and the need for user protection [6][8]. Compliance and Market Considerations - From a compliance perspective, stablecoin issuers must demonstrate capabilities in asset management, price stability mechanisms, and risk control [8]. - Market sustainability for stablecoin issuers is influenced by user scale, application scenarios, and financial resources [8]. - Applicants must provide feasible business plans that address economic and financial pain points while ensuring compliance and operational sustainability [8].

Core Viewpoint - Hong Kong's "Stablecoin Regulation" will officially take effect on August 1, introducing a licensing system for stablecoin issuers pegged to fiat currencies, with high entry barriers expected to limit initial licenses to only a few issuers [1] Group 1: Regulatory Framework - The Hong Kong Monetary Authority (HKMA) aims to provide a balanced perspective on stablecoins, emphasizing that they are not investment or speculative tools but rather payment instruments utilizing blockchain technology [1] - The licensing process for stablecoin issuers is designed with high thresholds due to the associated risks and the need for user protection, with expectations that only a few licenses will be granted in the initial phase [1] - The HKMA launched a "stablecoin issuer sandbox" last year to understand the business models of institutions planning to issue fiat-backed stablecoins in Hong Kong, with several companies expressing interest in participating [1] Group 2: Market Dynamics - Various new payment tools are emerging alongside stablecoins, including Central Bank Digital Currencies (CBDCs), tokenized deposits from international banks, and cross-border fast payment systems, each with unique characteristics and varying levels of maturity [1] - The future development of these payment tools will largely depend on market forces, indicating a dynamic and evolving landscape for digital payment solutions [1]