#CFTCCryptoSprint #Hong Kong Stablecoin New Regulations

On August 1, 2025, Hong Kong's "Stablecoin Ordinance" officially comes into effect, marking the establishment of the world's first comprehensive regulatory framework for fiat-backed stablecoins. This historic initiative positions Hong Kong as the first jurisdiction to implement in-depth regulation of stablecoins, injecting unprecedented regulatory certainty into the turbulent digital asset market. According to the new regulations, any entity issuing fiat-backed stablecoins in Hong Kong, or entities issuing stablecoins pegged to the Hong Kong dollar overseas, must apply for a license from the Hong Kong Monetary Authority. Non-bank institutions must meet a high threshold of HKD 25 million in paid-up capital, and reserve assets must be 100% held in highly liquid assets and independently custodialized with licensed banks. Holders have the unconditional right to redeem fiat at face value, and issuers must process redemption requests within one working day. Existing stablecoin issuers must submit their license applications by November 1, or they will enter a winding-up period. 01 Why does Hong Kong need to issue stablecoins? Seizing a new high ground in digital finance. Hong Kong's breakthrough in stablecoin regulation is underpinned by three strategic considerations. Strengthening its status as an international financial center. In the context of financial centers like New York, London, and Singapore competing to establish a foothold in digital assets, Hong Kong is seizing the power to set rules through "legislative primacy," attracting international institutions like Circle and Tether to establish their Asia-Pacific headquarters.