#Hong Kong Stablecoin New Regulations

On August 1, 2025, Hong Kong's "Stablecoin Ordinance" officially came into effect, marking the landing of the world's first comprehensive regulatory framework for fiat-backed stablecoins. This historic move makes Hong Kong the first jurisdiction to implement look-through regulation of stablecoins, injecting unprecedented regulatory certainty into the volatile digital asset market. According to the new regulations, any institution issuing fiat-backed stablecoins in Hong Kong, or 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 HK$25 million in paid-up capital, and reserve assets must be 100% high-liquidity assets and independently held in custody by licensed banks. 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 license applications by November 1, otherwise 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 this time contains three strategic considerations. Consolidate its position as an international financial center. Against the backdrop of financial centers such as New York, London, and Singapore competing to lay out digital assets, Hong Kong is seizing the right to formulate rules through "legislative precedence" and attracting international institutions such as Circle and Tether to establish Asia-Pacific headquarters. $ENA