The Stablecoin Law in Hong Kong officially comes into force on August 1, 2025, ushering in an era of strict licensing for stablecoin issuers.

The Hong Kong Monetary Authority has begun accepting applications for stablecoin licenses, setting high standards for capital, transparency, and risk management to enhance the credibility of the cryptocurrency market in the region.

MAIN CONTENT

  • The stablecoin law has been passed, effective from August 2025, and mandatory licensing is required.

  • More than 40 companies from both domestic and international are submitting stablecoin license applications in Hong Kong.

  • The licensing standards include minimum capital, local office presence, and strict risk governance.

How is the competition for stablecoin licensing in Hong Kong unfolding?

The stablecoin licensing in Hong Kong has attracted significant interest from global organizations, creating an increasingly competitive environment with dozens of businesses having submitted applications and expected to rise sharply.

This reflects Hong Kong's position as an attractive destination for stablecoin issuance and the development of cryptocurrency services. Some prominent names include JD CoinChain – a decentralized blockchain platform, Standard Chartered collaborating with partners to form a joint venture to apply for licenses, as well as Circle Innovation Technology and Ant International aiming to apply stablecoin to support cross-border payments.

When did the Hong Kong Monetary Authority officially open for applications?

The Hong Kong Monetary Authority (HKMA) will start accepting stablecoin license applications from August 1, 2025, allowing investors to trade cryptocurrencies through licensed platforms, aimed at enhancing management and sustainably developing the cryptocurrency market.

"The passing of the Stablecoin Law is a turning point. From August 1, 2025, all fiat-backed stablecoin issuers must be licensed by the HKMA and meet strict standards regarding reserves, redemption, and anti-money laundering."

Hong Kong Monetary Authority, announced June 2025

What are the mandatory standards for applying for stablecoin licensing?

The HKMA has set strict criteria such as a minimum paid-up capital of 25 million HKD, mandatory physical office presence in Hong Kong, along with a comprehensive risk management and reporting system.

These requirements indicate that Hong Kong is upgrading the standards of the digital asset market while balancing innovation encouragement and ensuring investor safety. The adoption of standards similar to those of international regulatory bodies reflects the effort to establish a reputable global cryptocurrency hub.

"We focus on increasing transparency and absolute security for the cryptocurrency ecosystem, ensuring a robust and sustainable market development."

Head of FinTech Development at HKMA, spoke in June 2025

What are the benefits and impacts of stablecoin licensing in Hong Kong?

This creates a clear legal environment, helping cryptocurrency businesses operate transparently, limiting fraud risks, while attracting foreign investment to enhance market liquidity.

At the same time, licensed stablecoin issuers will enjoy competitive advantages, being allowed to operate in a vibrant international financial center, contributing to activating a sustainable digital asset market in Asia.

Which major companies have applied for stablecoin licensing in Hong Kong?

Notable mentions include JD CoinChain with a decentralized blockchain platform, Standard Chartered with alliances with large partners targeting the cryptocurrency market in Hong Kong, along with Circle Innovation Technology – a non-profit organization focused on technology, and Ant International specializing in global digital payment solutions.

Challenges and opportunities for businesses when applying for stablecoin licensing

High capital requirements, compliance with strict regulations, and the need for an office in Hong Kong are significant barriers for many businesses. However, obtaining a license also opens up many opportunities for international cooperation, enhances credibility, and expands the market.

Comparison table of stablecoin licensing criteria in Hong Kong

Criteria Requirements in Hong Kong Benefits Minimum capital of 25 million HKD Ensures financial capability Physical office Mandatory presence in Hong Kong Increases transparency, easier management Risk management Compliance with strict AML regulations Fraud prevention, investor protection Scope of operations Issuance and trading of stablecoins Enhancing the regulated trading market

Frequently Asked Questions (FAQ)

When does the Stablecoin Law in Hong Kong come into effect? The law takes effect from August 1, 2025, requiring stablecoin issuers to have an HKMA license. Who can apply for stablecoin licensing in Hong Kong? All organizations inside and outside Hong Kong are eligible to submit stablecoin license applications. What is the most important criterion for obtaining a license? The minimum capital requirement of 25 million HKD, having an office located in Hong Kong, and strict compliance with AML standards. What benefits does stablecoin licensing bring to investors? It provides a safe, transparent trading environment, protecting users from fraud risks. Which companies are preparing license applications? Notable ones include JD CoinChain, Standard Chartered, Circle Innovation Technology, and Ant International.

Source: https://tintucbitcoin.com/many-stablecoin-companies-register-hk/

Thank you for reading this article!

Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!