After years of effort, the passage of the Stablecoins Ordinance marks a further improvement in Hong Kong's regulatory framework for cryptocurrency assets, demonstrating the forward-looking role of Hong Kong in balancing financial innovation and risk management. As a regulator, the Hong Kong Monetary Authority has a clear positioning of stablecoins - they are payment tools rather than investment products, and this definition helps the public to rationally understand their functional boundaries. The regulation is based on international standards and establishes a high threshold licensing system, emphasizing "substantive application scenarios" and "business sustainability". This can not only screen out compliant and capable issuers, but also avoid risks caused by market overheating. I think it is particularly commendable that the Hong Kong Monetary Authority has communicated regulatory expectations with the industry in advance through the "sandbox" and clearly stated that it will not link sandbox participation with licenses, reflecting the rigor and transparency of the approval process. I believe that the future challenge is the effective connection between regulation and practical application scenarios. At present, the settlement of traditional financial systems and stablecoins is still in an adaptation period. In the future, further breakthroughs are needed in the convenience, operability, and prevention of financial risks related to the use of stablecoins, in order to expand the influence of compliant stablecoins in Hong Kong. Additionally, I also suggest that Hong Kong can learn from the European Union MiCA Experience in cross-border coordination, while continuously monitoring market changes and adjusting guidelines in a timely manner. Overall, this move lays the foundation for Hong Kong to consolidate its position as a fintech hub, but a balance needs to be maintained between promotion and risk warning to ensure the steady development of the industry. https://www.hkma.gov.hk/chi/news-and-media/insight/2025/06/20250623/