The New Era of Stablecoins: Entrepreneurial Opportunities Under Hong Kong Regulations

On May 21, the Hong Kong Legislative Council passed the currency regulation bill, marking the official start of a new era in digital asset regulation. This move has sparked widespread discussion in the cryptocurrency community, with some cheering and others feeling anxious. However, seasoned industry professionals remain calm, as they realize that this is not the end but the beginning of a grand wealth restructuring drama surrounding the stablecoin ecosystem.

For those aspiring to start a business in this field, it is important to pay attention to the new tracks that are cracking under the feet of the giants and to look for opportunities that suit them.

Stablecoin Issuance: High Barrier Challenges

First, we must face the reality: if you are still dreaming of becoming rich overnight by issuing stablecoins in Hong Kong, it is best to dispel that thought as soon as possible. This field has become a "game for heavy capital players," and the challenges include:

1. Advantages of regulatory sandbox pioneers: Some large enterprises have been honing their skills in regulatory sandboxes for many years, accumulating rich experience and resources.

2. Strict financial requirements: A registered capital of 25 million HKD is required, along with operating costs, which poses a huge barrier for ordinary entrepreneurs.

3. Strict regulatory scrutiny: Requirements for reserve asset management, audit transparency, and others are very stringent, necessitating professional teams and system support.

4. Policy Risk: Stablecoins involve currency sovereignty, and there is a significant risk of policy changes, making them unsuitable for small teams with limited resources.

Entrepreneurial Opportunities: Five Core Tracks

Although the threshold for issuing stablecoins is high, there are still numerous opportunities in the service areas surrounding stablecoins. Here are five highly potential tracks:

1. PayFi Infrastructure

This is the main battlefield for small and medium-sized teams, mainly including:

• Cross-border payments: Providing fast and low-cost payment solutions for foreign trade enterprises.
• Merchant Settlement: Providing retailers with stablecoin payment collection and real-time settlement services.
• Multi-chain settlement: Create a "UnionPay of the crypto world" to enable the circulation of stablecoins between different public chains.

2. Compliance Services

With the tightening of regulations and the significant increase in compliance requirements, opportunities include:

• Anti-money laundering tools: Develop on-chain transaction monitoring and risk identification systems.
• Audit Services: Providing reserve audits for stablecoin issuers.
• Regulatory Technology (RegTech): Developing automated compliance reporting tools.

3. Cross-chain bridging

The development of multi-chain ecosystems has brought about a huge demand for cross-chain.

• Develop secure and efficient cross-chain protocols that support mainstream public chains.
• Focus on security and adopt advanced cryptographic techniques.
• Be careful to avoid crossing regulatory red lines, such as disguised issuance of coins.

4. Stablecoin Asset Management

Help users achieve stablecoin appreciation:

• Access DeFi protocols: Provide lending yields.
• Real Asset (RWA) Investment: Such as tokenized government bonds.

5. Reserve Asset Management

Provide professional services for stablecoin issuers:

• Asset Custody
• Audit and Asset Evaluation
• Asset allocation and risk management strategies

Conclusion

The introduction of the Hong Kong stablecoin regulations is an important step in global digital asset regulation. It brings clear rules and predictability to the industry, which itself is a kind of institutional dividend. For entrepreneurs, the key is to find their position correctly, not to compete head-on with giants, but to find their suitable role within the ecosystem. In this new era, compliance is not only the bottom line but also an important competitive advantage. Only by clearly understanding the track and finding the right positioning can one seize opportunities in the wave of stablecoins led by Hong Kong.