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

On August 1, 2025, Hong Kong's "Stablecoin Ordinance" officially comes into effect, marking the establishment of the world's first comprehensive regulatory framework for fiat stablecoins. This historic initiative makes Hong Kong the first jurisdiction to implement thorough regulation of stablecoins, injecting unprecedented institutional certainty into the turbulent digital asset market. According to the new regulations, any entity issuing fiat stablecoins in Hong Kong, or issuing stablecoins pegged to the Hong Kong dollar value overseas, must apply for a license from the Hong Kong Monetary Authority. Non-bank institutions must meet a high threshold of 25 million Hong Kong dollars in paid-up capital, and the reserve assets must be 100% high liquidity assets and independently custodied with licensed banks. 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 enter a winding-up period. 01 Why does Hong Kong need to issue stablecoins? Seizing new heights in digital finance Hong Kong's breakthrough in stablecoin regulation is backed by three strategic considerations. Consolidating its status as an international financial center. In the context of financial hubs like New York, London, and Singapore competing for positioning in digital assets, Hong Kong is seizing the initiative in rule-making through "legislative foresight" to attract international institutions like Circle and Tether to establish their Asia-Pacific headquarters. $ENA