Hong Kong Stablecoin, ETF to Boost Cryptocurrency Landscape? Animoca Brands Founder: Digital Hong Kong Dollar Holds Unique Potential

Under the regulatory framework in Hong Kong, it is now possible to legally issue stablecoins pegged to the Hong Kong dollar. Recently, Yat Siu, founder of Hong Kong venture capital and gaming brand company Animoca Brands, shared his views on the impact of stablecoins.

Digital Hong Kong Dollar Use Case? Different from the U.S. Dollar System Niche Market

According to The Block's interview, Yat Siu emphasized the unique advantages of the Hong Kong dollar, pointing out its relationship with the U.S. dollar. He explained that the Hong Kong dollar stablecoin is a currency that is both linked to the U.S. dollar and different from it, providing an alternative for those seeking regulated needs. "The Hong Kong dollar can serve as an interesting alternative," he said.

The Hong Kong Monetary Authority has launched a "sandbox" program to guide stablecoin issuance towards compliance.

Hong Kong has Launched a Stablecoin Sandbox Program

In March of this year, the Hong Kong Monetary Authority introduced a sandbox program for issuers who are genuinely interested and prepared to issue fiat-backed stablecoins in Hong Kong. They also provided a set of compliance guidelines to help these issuers navigate future regulatory requirements smoothly.

Through the "sandbox" program, the Monetary Authority will collect feedback from participants on the proposed regulatory requirements, aiming to ensure that the upcoming regulatory framework achieves regulatory objectives without overly hindering industry development.

Hong Kong's Spot Bitcoin ETF is also set to launch soon, Asia to become the center of Web3

Yat Siu also discussed the development of ETFs in Hong Kong, particularly the expected approval of a spot Bitcoin ETF. This could not only enhance Web3 investments in Hong Kong but also potentially position Hong Kong ahead of the U.S. in diversified ETF offerings. Yat Siu believes this demonstrates Hong Kong's clearer regulatory framework with Ethereum spot ETFs and GamFi tokens.

Yat Siu believes that due to regulatory challenges brought by the U.S., Asia will become the center of Web3 innovation in the near to mid-term. He stated that Web3 will be an Asian narrative as the regulatory environment here is more flexible.