#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 a transparent regulatory approach to stablecoins, injecting unprecedented institutional certainty into the turbulent digital asset market. According to the new regulations, any entity issuing fiat stablecoins in Hong Kong, or institutions issuing stablecoins pegged to the value of 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% high-liquidity assets held independently by a licensed bank. Holders have the unconditional right to redeem fiat currency at face value, and issuers must process redemption requests within one business day. Existing stablecoin issuers must submit their license applications by November 1, or enter a winding-up period. 01 Why does Hong Kong need to issue stablecoins? Seizing new heights in digital finance. Hong Kong's breakthrough in stablecoin regulation is underpinned by three strategic considerations. Consolidating its position as an international financial center. In the context of financial centers like New York, London, and Singapore competing to lay out digital assets, Hong Kong is seizing the opportunity to establish rule-making authority through "legislative initiative," attracting international institutions such as Circle and Tether to set up their Asia-Pacific headquarters.