🔴 Hong Kong Implements Stablecoin Licensing Regime
Legislative enactment: In May 2025, Hong Kong’s Legislative Council passed the Stablecoins Ordinance to regulate fiat‑referenced stablecoin issuers. The ordinance takes effect on August 1, 2025, after which the Hong Kong Monetary Authority (HKMA) will begin accepting licence applications
Regulatory guidelines published: On July 29, 2025, HKMA released finalized guidelines for supervising licensed stablecoin issuers and anti‑money‑laundering (AML) requirements. These documents—effective from August 1—were gazetted the same day
High licensing thresholds: Licensing standards include minimum capital, full reserve backing, AML controls, redemption mandates within one business day, and audited reserve management. Only a handful of licences are expected initially
Timeline and cautions: HKMA advises potential issuers to contact regulator by August 31, 2025 for early feedback, and to submit applications by September 30 for initial consideration. False claims regarding licensing status are now subject to legal sanction
Licences expected early 2026: HKMA Deputy Chief Executive confirmed that first stablecoin licences will be issued in early 2026, signaling a cautious rollout
Corporate interest begins: Companies such as Ant Group (via Ant International) have formally announced intentions to apply for licences. Financing activity has surged in anticipation of the new regime, with over $1.5 billion raised by Hong Kong–listed fintech firms in July 2025
✅ Why it matters
Hong Kong joins global leaders in regulated stablecoin frameworks, aligning with the EU’s MiCA and developments in U.S. crypto law
The ordinance applies extraterritorially to any stablecoin referencing HKD—even if issued abroad—underscoring Hong Kong’s focus on monetary control and investor protection
The move marks a strategic step toward transforming Hong Kong into a trusted regional hub for digital assets and tokenized finance.