Hong Kong's regulation of stablecoins has undergone a legislative process lasting more than three years, from the initial policy conception to the final formal implementation, fully demonstrating Hong Kong's systematic planning in the regulation of stablecoins. This process can be summarized in four key stages:

1. Policy Formulation Stage (January 2022 to June 2023)
At this stage, the Hong Kong Monetary Authority took the lead in releasing the "Discussion Paper on Crypto Assets and Stablecoins", initiating a comprehensive assessment of industry risks and regulatory needs. Subsequently, the Hong Kong government issued the "Policy Declaration on the Development of Virtual Assets", clarifying its intention to include stablecoins under regulatory oversight. The Monetary Authority then published a consultation summary, establishing a risk-based regulatory approach as the core direction, and emphasizing the necessity of legislative norms for stablecoin issuance. In June 2023, Hong Kong implemented the "Licensing Regime for Virtual Asset Trading Platforms", laying a solid foundation for the subsequent regulation of stablecoins.

2. Public Consultation and Sandbox Pilot Phase (December 2023 to July 2024)
This phase focuses on extensive public input and practical testing. A total of 108 comments were received during the two-month public consultation, focusing on key issues such as reserve asset transparency, redemption mechanisms and anti-money laundering requirements. The HKMA then launched the "Stablecoin Issuer Sandbox Programme", which attracted the participation of a number of institutions, including Standard Chartered Bank, JD Technology and Hong Kong Telecom, to test cross-border payments and tokenisation applications. In July 2024, the Financial Services and the Treasury Bureau (FSTB) of the Financial Secretary's Office (FSTB) and the HKMA jointly published a consultation conclusion setting out the core principles of the legislative framework.

3. Legislative Phase (August 2024 to June 2025)
At this stage, the Hong Kong Legislative Council has reviewed and passed the "2025 Stablecoin Regulation Bill." The bill specifies the licensing requirements for stablecoin issuers, operational standards, and the enforcement powers of regulatory authorities, providing a legal basis for the regulation of stablecoins.

4. Implementation and Adjustment Phase (July 2025 to present)
Starting from July 1, 2025, the "Stablecoin Regulations" will officially come into effect. The Monetary Authority immediately issued detailed regulatory guidelines covering multiple aspects such as stablecoin issuance, reserve management, and risk control. At the same time, to ensure the effectiveness and adaptability of regulation, the regulatory authorities continuously monitor market dynamics and adjust policies in a timely manner based on actual conditions.

Hong Kong's series of measures in stablecoin regulation not only reflects its efforts to seek a balance between financial innovation and risk management but also provides valuable references for stablecoin regulation in other regions of the world. Through this incremental regulatory framework, Hong Kong aims to create a regulatory environment that promotes fintech innovation while effectively managing risks, in order to consolidate its position as an international financial center.