#Hong Kong Stablecoin New Regulations On August 1, 2025, Hong Kong's 'Stablecoin Regulation' 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 thorough regulatory approach to 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 any institution 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 independently custodied by 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; 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 is underpinned by three strategic considerations. Consolidating its status as an international financial center. In the context of financial centers like New York, London, and Singapore competing to layout digital assets, Hong Kong is seizing the discourse power of rule-making through 'legislative preemption' to attract international institutions like Circle and Tether to establish their Asia-Pacific headquarters. $ENA