Big moves for Web3 in Hong Kong? The first full-service broker license for Crypto Assets has been issued! Stablecoins are no longer "only HKD"?

The Web3 development process in Hong Kong is pressing the "fast forward" button at an impressive speed. Just as the market eagerly anticipates the upcoming implementation of the stablecoin regulations on August 1, a significant piece of news from the TradFi sector has, first and foremost, injected a shot of adrenaline into the city’s digital asset ambitions. Chinese state-owned brokerage giant Guotai Junan International has announced that it has officially received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing license, becoming the first Chinese brokerage in Hong Kong capable of providing comprehensive virtual asset-related trading services. Following the news, its stock price surged over 70% shortly after the market opened, with the capital market expressing its optimistic expectations for the combination of "compliance" and "crypto" in the most direct way. This is not just a license upgrade, but a symbolic milestone that signifies the accelerating and deep integration of TradFi power into Hong Kong's Web3 ecosystem. At the same time, according to sources closely collaborating with the Hong Kong government, the regulatory framework for stablecoins in Hong Kong has a grand vision that far exceeds market expectations, and Hong Kong's goals may never have been limited to just the HKD stablecoin. the first "full-service" licensed brokerage The recent license upgrade approved for Guotai Junan International makes it one of the very few financial institutions in the market capable of providing one-stop virtual asset services. The term "full-service" means that the company has connected the four core components of the virtual asset sector: Trading Services: Clients can directly trade cryptocurrencies (such as Bitcoin, Ethereum, etc.), stablecoins (such as Tether, etc.), and other virtual assets on their platform. Issuance and Distribution: Capable of issuing and distributing products related to virtual assets, including over-the-counter derivatives. Investment Advice: Can provide clients with professional investment advice on virtual assets. Asset Management: Covers businesses such as virtual asset ETFs, futures brokerage, and over-the-counter derivatives. Since laying out the virtual asset ETF brokerage business in 2024, and now obtaining a complete trading and advisory license, Guotai Junan International's compliance layout has taken shape. This move is seen as a positive response to the Hong Kong Securities and Futures Commission's promotion of the international virtual asset center policy, and also means that investors will be able to safely and compliantly participate in the Web3 world through a strictly regulated traditional brokerage in the future. The granting of this license undoubtedly builds a solid bridge between TradFi and Web3. Three Core Thresholds of Stablecoins

While achieving breakthroughs in brokerage business, the other shoe of Hong Kong's stablecoin regulation is also about to drop. The "Stablecoin Regulation" will officially take effect on August 1, and the Hong Kong Monetary Authority (HKMA) has set clear "entry ticket" standards for institutions intending to issue stablecoins in Hong Kong. The President of the Hong Kong Monetary Authority, Yu Weiwen, recently emphasized that the essence of stablecoins is to enhance payment efficiency, rather than being a speculative tool. Therefore, institutions applying for a license must meet three core thresholds: 1:1 fiat currency reserves and transparent redemption: Issuers must hold 100% equivalent, high-quality, and highly liquid fiat currency reserves for the stablecoins they issue, ensuring users can redeem at face value at any time to build user confidence and safeguard asset security. Sufficient capital and compliance system: Applicants must prove they have at least 25 million HKD in self-owned capital (if the applicant is a "recognized institution" like a bank, they may be exempt) and establish a sound asset custody, risk management, and anti-money laundering (AML) process. Specific and sustainable application scenarios: Applicants must submit a concrete and feasible business plan and demonstrate the actual application scenarios of their stablecoin. It is reported that the first phase will focus on cross-border trade and Web3-related applications. It is worth noting that the Monetary Authority has clearly stated that it will adopt a cautious strategy initially, issuing only a "small number" of licenses to ensure the stability of the financial system. Currently, more than 40 institutions are participating in the stablecoin regulatory sandbox program, including major players such as JD Coinchain Technology, Ant Group, Standard Chartered Bank, Animoca Brands, and Hong Kong Telecom. Stablecoins are no longer just "Hong Kong Dollar". While the market generally believes that the new regulations for stablecoins in Hong Kong will primarily focus on "Hong Kong dollar stablecoins", Xiao Feng, chairman of the licensed exchange HashKey Group, put forward a disruptive viewpoint during an interview, revealing a broader perspective of the regulatory framework in Hong Kong. Xiao Feng clearly pointed out that the stablecoin license in Hong Kong "is not limited to HKD stablecoins." Approved issuers will have the option to choose multiple fiat currency types as the anchor for their stablecoins. This is crucial. It means that Hong Kong's goal is not merely to create a regional HKD stablecoin ecosystem, but to become a global, multi-currency stablecoin issuance center. In the future, we may see stablecoins compliant with regulations in Hong Kong that are anchored to offshore RMB (CNH), Japanese Yen (JPY), Euro (EUR), and even more other national currencies. In addition, Xiao Feng also revealed another detail that reflects the openness of Hong Kong's regulations: issuers can freely choose the blockchain network to deploy their stablecoin. Whether it's a public chain like Ethereum or Solana, or the issuer's own consortium chain or private chain, the regulation maintains a neutral and flexible attitude towards the underlying technology. This dual openness of "multi-currency support" and "technological neutrality" far exceeds the market's previous general expectations and will undoubtedly inject unprecedented vitality into Hong Kong's digital asset market, attracting global issuers, developers, and capital to converge here. "Firewall" and "Test Field" Hong Kong's various major moves in the Web3 field are inseparable from its unique strategic positioning under "one country, two systems." The Financial Secretary of Hong Kong, Paul Chan, has provided a profound interpretation of this, summarizing Hong Kong's role as a "firewall" and a "testing ground." Firewall: The risks of financial innovation, especially in the field of digital assets, can be effectively isolated and managed in Hong Kong to ensure that they do not transmit to the mainland financial system, playing a protective role. Experimental Field: Various new models and policies related to Web3 can be piloted in the internationalized soil of Hong Kong. Once the experiments are successful, their experiences and models can provide valuable references and lessons for the future development of the mainland. The development of stablecoins is a perfect embodiment of this dual role. By establishing an open and regulated stablecoin ecosystem in Hong Kong, particularly providing possibilities for the exploration of offshore renminbi stablecoins, Hong Kong is opening up a completely new digital path for the internationalization of the renminbi, while reinforcing its position as a global offshore renminbi business hub. Conclusion From the issuance of the first full-service brokerage license to the upcoming implementation of multi-currency stablecoin regulations, Hong Kong is firmly and pragmatically announcing its determination to build an "international virtual asset center" to the world. This is no longer a scattered layout, but a series of interconnected and progressively layered moves. Hong Kong's ambitions are clearly not limited to becoming just another cryptocurrency trading center; rather, it aims to leverage its mature financial system, sound rule of law, and the unique advantages of "one country, two systems" to become a key hub connecting TradFi and the digital economy, as well as the East and the West. This Web3 spectacle led by Hong Kong has only just begun.