#CFTCCryptoSprint #Hong Kong Stablecoin New Regulations #Hong Kong Stablecoin New Regulations

On August 1, 2025, Hong Kong's "Stablecoin Ordinance" officially takes 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 institutional certainty into the turbulent digital asset market. According to the new regulations, any entity issuing fiat-backed stablecoins in Hong Kong, or 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 25 million HKD in paid-up capital, and reserve assets must be 100% high liquidity assets and independently custodied at a licensed bank. 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 the new heights of digital finance. Hong Kong's breakthrough in stablecoin regulation reflects three strategic considerations. Consolidating its position as an international financial center. Amid competition among financial hubs like New York, London, and Singapore to establish a foothold in digital assets, Hong Kong aims to seize the authority of rule-making through "legislative first" and attract international institutions such as Circle and Tether to set up their Asia-Pacific headquarters.