Hong Kong's Web3 ecosystem is accelerating at an unprecedented pace. Amidst market anticipation for the Stablecoin Ordinance taking effect August 1, 2024, a groundbreaking development from traditional finance has emerged as a pivotal moment for the city's digital asset ambitions.
Traditional Finance Embraces Web3: Guotai Junan's Landmark License
Chinese brokerage giant Guotai Junan International announced approval from Hong Kong's Securities and Futures Commission (SFC) to upgrade its existing license—becoming the first mainland-backed firm authorized to offer comprehensive virtual asset services, including:
👉 Discover how top institutions are entering crypto
- Trading: Direct client access to Bitcoin, Ethereum, and stablecoins like USDT
- Issuance & Distribution: OTC derivatives and virtual asset products
- Advisory: Professional investment guidance on digital assets
- Asset Management: ETFs, futures brokerage, and derivatives
This "full-service" authorization represents a strategic bridge between traditional finance and Web3, with shares surging 70% post-announcement—reflecting strong market confidence in regulated crypto integration.
Stablecoin Regulation: Hong Kong's Multilateral Vision
The Hong Kong Monetary Authority (HKMA) outlined strict criteria for stablecoin issuance under the upcoming ordinance, emphasizing three pillars:
- 1:1 Reserves - Full backing by high-quality fiat currencies
- Minimum Capital - HKD 25M requirement (waived for banks)
- Real-World Utility - Focus on cross-border trade and Web3 applications
Notably, HashKey Group Chairman Xiao Feng revealed Hong Kong's framework supports multi-currency stablecoins (beyond HKD), including potential CNH, JPY, and EUR-pegged tokens.
Key Advantages:
- Blockchain Agnostic: Issuers choose networks (Ethereum, private chains, etc.)
- Global Issuance Hub: 40+ participants in regulatory sandbox (Ant Group, Standard Chartered, etc.)
Hong Kong's Dual Role in China's Web3 Strategy
As Financial Secretary Paul Chan articulated, Hong Kong serves as:
| Role | Function | Example |
|---|---|---|
| Firewall | Isolates financial risks from mainland systems | Crypto volatility containment |
| Testing Ground | Pilots innovative models for future mainland adoption | Offshore CNH stablecoin trials |
This positioning enables controlled experimentation with digital asset frameworks while advancing RMB internationalization through Web3 channels.
FAQ: Hong Kong's Web3 Evolution
Q1: Which firms can apply for stablecoin licenses?
A: Banks, fintechs, and qualified institutions meeting HKMA's capital/reserve requirements.
Q2: Are non-HKD stablecoins legally recognized?
A: Yes—the ordinance explicitly permits multi-currency pegs under SFC oversight.
Q3: How does this impact retail investors?
A: Traditional brokerages like Guotai Junan provide regulated on-ramps for safer crypto exposure.
👉 Expert insights on Asia's crypto regulations
With its progressive licensing and multi-currency stablecoin framework, Hong Kong is cementing its status as a Web3 innovation hub—balancing financial sovereignty with global ambitions.