This article is derived from an article written by Crypto Salad, which discusses in depth many details of Hong Kong's stablecoin law and explains the possible impact in the future. It was sorted, compiled and written by Foresightnews. (Previous: Alipay's parent company) Ant Group plans to apply for stablecoin licenses in Hong Kong and Singapore, and related concept stocks have soared) (Background supplement: Chinese police: The virtual currency involved in the case is now sold through the Hong Kong Stock Exchange and turned over to the national treasury) 2025 can be said to be the first year of stablecoins. On May 21, Hong Kong successively completed the second and third reading procedures of the (Stablecoin Bill), which was formally passed by the Legislative Council. Later, on May 29, 2025, the (Stablecoin Ordinance) (hereinafter referred to as the "Ordinance") was released, and it was announced that it will officially take effect on August 1. This incident triggered a wave of enthusiasm inside and outside the circle, and Crypto Salad also received a large number of related consultations. We found that everyone is generally concerned about what practical benefits this bill can bring and what impact it will have on the Web3 community; they also want to know whether it is necessary for them, as participants in the upstream and downstream of the industry chain, to devote themselves to the construction of stablecoins, and from which angles they should try to enter; if they intend to issue compliant stablecoins as a licensed institution, how should they apply for relevant licenses... Prior to this, Crypto Salad has already made a detailed interpretation of the core concepts such as the definition, characteristics, and functions of stablecoins, see: (Web3 lawyer interpretation: Are stablecoins necessarily stable? Why are stablecoins so important?); at the same time, it also discussed the regulatory focus of stablecoins and made an in-depth comparison of the respective stablecoin regulatory frameworks in the United States and Hong Kong, see: (Web3 lawyer in-depth interpretation: What are the regulatory focus of stablecoins? What are the differences between the stablecoin regulatory frameworks in the United States and Hong Kong?). In this article, Crypto Salad will no longer elaborate on the connotation and value of stablecoins themselves, but will focus on the new (regulation) in Hong Kong and sort it out in more detail to explore the answers to the following questions: What are the minimum requirements for applying for a stablecoin license? What can you do with a stablecoin license? How are the reserve asset management and redemption mechanisms specifically stipulated? What impact does stablecoin have on cross-border RMB payments? What does the passage of the (Regulations) mean for the industry?Is the financial market structure in Hong Kong going to change drastically? … 1. Interpretation of the regulatory framework of the Hong Kong (Stablecoin Ordinance) 1. What kind of stablecoin does Hong Kong regulate? The essence of a stablecoin is a cryptographic asset that achieves price stability through a specific mechanism, such as anchoring to reserve assets. The (Ordinance) has a clear definition of stablecoins: a stablecoin is a digital form of value protected by encryption, with the following characteristics: its value is expressed as a unit of account or a form of economic storage; used for payment, repayment of debts or investment; can be transferred, stored or traded electronically; executed on a decentralized account or similar technology basis; its value is ostensibly anchored to a certain asset or asset portfolio. At the same time, the (Ordinance) specifically excludes some digital value forms that are not within its regulatory scope, such as digital currencies issued by central banks and related banks, points systems as limited-purpose tokens, assets that are regarded as securities or futures contracts (such as security tokens), stored value amounts regulated by the (Payment Systems and Stored Value Facility Ordinance), and traditional bank deposits. However, the (Ordinance) does not regulate all stablecoins, it limits the regulatory objects to "specified stablecoins" operating in Hong Kong. Specified stablecoin is a term unique to the Hong Kong government. According to the definition in Article 4 of the (Regulations), specified stablecoin refers to a stablecoin that maintains its stable value by reference to one or more official currencies, units of calculation or forms of economic value storage specified in the announcement of the HKMA, or a combination of the above two. In fact, it is what we commonly call legal tender-pegged stablecoins (hereinafter referred to as "legal tender stablecoins"). It can be seen that the Hong Kong government has chosen to focus on the payment function, because legal tender stablecoins are the most likely to be used as "quasi-currencies" in the financial trading market based on their high collateral ratio with legal tender, high value stability and low degree of decentralization. When stablecoins become a common payment tool and expand their scale of use, once a run or depegging occurs, it will inevitably affect the entire financial ecosystem. Therefore, the demand and requirements for stablecoin supervision are very high. In addition, the (Regulations) clearly restrict licensees from paying interest on the specified stablecoins they issue, reducing the necessity of them being regarded as savings financial products.Other non-payment purposes, stablecoins with insufficiently stable values, such as algorithmic stablecoins, are also not included in this first round of regulatory objects. 2. Which activities of stablecoins are restricted? After the passage of the (Ordinance), anyone who conducts or represents himself as conducting regulated stablecoin activities must hold a license. One of the core regulatory aspects of the (Ordinance) is to define which activities belong to "regulated stablecoin activities". Article 5 provides a clear scope of restricted activities at this stage: Issuing specified stablecoins in Hong Kong; Issuing specified stablecoins anchored to the Hong Kong dollar outside Hong Kong (regardless of the reference ratio); The Monetary Authority announces specified activities after consulting the Financial Secretary; Actively promote to the public that one conducts or appears to conduct the above activities. In addition, Part 2 of the (Ordinance) also specifies other regulatory scopes for specified stablecoins: Offering or representing oneself to offer to provide specified stablecoins: Advertising for regulated stablecoin activities and the above offers; Fraudulent or deceptive activities involved in or carried out in connection with specified stablecoin transactions or to induce others to enter into agreements for the purpose of acquiring, disposing of, subscribing for or underwriting specified stablecoins. In general, the (Regulations) focus on the issuance, distribution and retail of stablecoins. A series of restrictions on "offers" and "advertising" are all aimed at limiting stablecoins to the category of "payment tools" and preventing them from being packaged as investment products that can be hyped. Issuers, platform operators, wallet service providers and other roles are included in the regulatory system to ensure that the entire chain of the stablecoin ecosystem is regulated. From the perspective of jurisdiction, the Hong Kong government not only regulates stablecoins issued in Hong Kong, but also regulates the issuance of stablecoins pegged to the Hong Kong dollar outside Hong Kong. Even if the issuance does not occur in Hong Kong, as long as the stablecoins it issues are pegged to the Hong Kong dollar, no matter what the reference ratio is, they will be regarded as having potential local financial influence and will be included in the regulation. This arrangement reflects Hong Kong's high attention to monetary sovereignty and financial stability, and prevents unauthorized digital assets from misleading the public in the market for profit by using the name of "pegging to the Hong Kong dollar". 3. How to apply for a stablecoin license? The licensing system is the core regulatory mechanism established by the (Regulations).Any company that issues, manages or distributes specified stablecoins in Hong Kong or an authorized institution incorporated outside Hong Kong must submit a formal license application to the Monetary Authority. The Ordinance does not set out a variety of different licenses, but is based on a unified license and imposes differentiated conditions when granting a license based on the specific business and risk characteristics of the applicant. The approval process for a license is relatively simple. You can directly apply to the Monetary Authority and wait for his or her decision. The main focus of the Monetary Authority's review is whether the applicant meets the "minimum standards" set out in (Schedule 2). The specific conditions are as follows: (1) Sufficient financial resources and liquid assets Applicants need to pay a share capital of no less than HK$25 million or an equivalent amount in other currencies; or hold other financial resources with a value of greater than or equal to HK$25 million, and approved by the Monetary Authority. (2) Allocation of corresponding reserve assets The Hong Kong government has...