#Hong Kong Stablecoin New Regulations

On August 1, 2025, Hong Kong's Stablecoin Ordinance officially came into effect, marking the establishment of the world's first comprehensive regulatory framework for fiat-backed stablecoins. This historic initiative makes Hong Kong the first jurisdiction to implement in-depth regulation of 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 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 HKD 25 million in paid-up capital, and reserve assets must be 100% high liquidity assets and independently custodied at licensed banks. Holders enjoy 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 their license applications by November 1, or they will 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 underpinned by three strategic considerations. Consolidating its position as an international financial center. Against the backdrop of financial centers like New York, London, and Singapore competing to lay out their digital asset strategies, Hong Kong is seizing the initiative in rule-making through 'legislative foresight' to attract international institutions such as Circle and Tether to establish their Asia-Pacific headquarters. $ENA