Hong Kong stablecoin licensing
Effective August 1, 2025, Hong Kong requires all fiat-referenced stablecoin issuers to obtain a license from the Hong Kong Monetary Authority (HKMA) to operate in the region. The law, known as the Stablecoins Ordinance, was passed by the legislature in May 2025. This marks a significant step in Hong Kong's ambition to become a leading digital asset hub.
Key details of the new regime:
Regulator: The Hong Kong Monetary Authority (HKMA) is the sole regulator for stablecoin issuers.
Scope: The licensing requirement applies to any person who:
Issues fiat-referenced stablecoins in Hong Kong in the course of business.
Issues stablecoins pegged to the Hong Kong dollar, whether inside or outside of Hong Kong.
Actively markets these stablecoins to the Hong Kong public.
Requirements: To obtain and maintain a license, issuers must meet strict standards, including:
Full backing of the stablecoin with high-quality, highly liquid reserve assets.
Segregation of reserve assets from the issuer's own funds.
Robust governance, risk management, and anti-money laundering (AML) controls.
Disclosure of information about the stablecoin and regular attestations of reserve assets.
Transitional arrangements for existing issuers: Pre-existing stablecoin issuers that were operating before August 1, 2025, had until October 31, 2025, to submit a license application to the HKMA.
First licenses: The HKMA is expected to grant the first batch of licenses in early 2026, and the initial number is likely to be limited.