# Hong Kong Stablecoin New Regulations

On August 1, 2025, Hong Kong's "Stablecoin Regulation" officially comes into effect, marking the global debut of a comprehensive regulatory framework specifically for fiat-backed stablecoins. This historic initiative positions Hong Kong as the first jurisdiction to implement a thorough regulatory approach to stablecoins, injecting unprecedented institutional certainty into the turbulent digital asset market. According to the new regulations, any organization 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 HKD 25 million in paid-up capital, and their reserve assets must be 100% high liquidity assets and independently custodied by licensed banks. Holders have the unconditional right to redeem fiat currency at face value, and issuers must process redemption requests within one working day. Existing stablecoin issuers must submit 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 is underpinned by three strategic considerations. Consolidating international financial center status. Against the backdrop of financial centers like New York, London, and Singapore competing to establish themselves in digital assets, Hong Kong is seizing the opportunity for rule-making by "legislating first" to attract international institutions like Circle and Tether to set up their Asia-Pacific headquarters. $ENA