In summary: This is the world's first comprehensive regulatory framework for stablecoins linked to fiat currencies (such as Hong Kong dollar stablecoins), officially effective on May 30, 2025. The core objective is to safeguard user funds while encouraging financial innovation.
🔒 Core regulations: Safety first
1. Licensing required for issuance
Want to issue stablecoins in Hong Kong? You must apply for a license from the Hong Kong Monetary Authority and pass a stringent review.
Minimum threshold: The company's paid-in capital must reach 25 million Hong Kong dollars to ensure financial strength.
For example: Companies like JD.com and Standard Chartered Bank have entered regulatory sandbox testing and will need to operate under a license in the future.
2. 100% reserve guarantee
Issuers must fully support the value of stablecoins with cash, government bonds, and other highly liquid assets, and the assets must be independently custodied to avoid misappropriation risks.
User rights: Stablecoins can be redeemed at face value for free at any time, and the redemption process must be transparent and efficient.
3. Restrictions on sales targets
Only four types of institutions can sell stablecoins to ordinary users (retail investors):
✅ Licensed issuers
✅ Licensed virtual asset trading platforms (such as OSL)
✅ Licensed securities dealers
✅ Hong Kong recognized banks.
Stablecoins issued by unlicensed institutions (such as USDT) can only be sold to professional investors.
💡 Application scenarios: Not just for trading
Cross-border payments: JD.com plans to use stablecoins to address issues of low efficiency and high costs in cross-border settlements, serving global trade.
Real economy: Standard Chartered Bank tests Hong Kong dollar stablecoins for trade among Greater Bay Area enterprises, expected to reduce exchange costs by 3%-5%.
Financial Innovation: Yuan Coin Technology explores issuing stablecoins on the Ethereum chain, connecting DeFi lending, yield aggregation, and other scenarios.
⚠️ Consequences of violations: Zero tolerance
Unlicensed issuance: Maximum fine of 5 million Hong Kong dollars + 7 years of imprisonment.
Fraudulent activities: Maximum fine of 10 million Hong Kong dollars + 10 years of imprisonment.
🌍 Why is it important?
Global Leader: Hong Kong is the first financial center to establish comprehensive rules for stablecoins, ahead of similar legislation in the US.
User protection: Prevent events similar to the Terra collapse, ensuring stablecoins are 'truly stable'.
Future potential: Promote the development of Hong Kong dollar and offshore renminbi stablecoins, aiding the internationalization of the renminbi.
💎 Summary
Hong Kong's (Stablecoin Regulation) builds a safety net for newcomers to participate in the crypto economy with strong regulation and high transparency. It is not only a technical rule but also a bridge connecting traditional finance and Web3—allowing ordinary people to safely use stablecoins for payments, investments, and cross-border transfers.
> 📌 Newcomer tips:
> When choosing stablecoins, ensure they are 'issued by licensed institutions in Hong Kong' to avoid purchasing unqualified products!
