Hong Kong has officially announced the introduction of a stablecoin ordinance effective August 1, 2025. This new regulation aims to organize the legal framework for digital assets, particularly those backed by fiat currencies.
Key Points of the New Regulation
On June 29, 2025, Hong Kong's Financial Secretary Paul Chan announced the upcoming implementation of the ordinance aimed at regulating stablecoins. The regulation is intended to improve international payment transactions and foster the development of financial technology in Hong Kong.
Licensing Requirements for Stablecoin Issuers
The regulation mandates licensing for stablecoin issuers to be overseen by the Hong Kong Monetary Authority. This requirement will limit the issuance process to approved entities, enhancing the efficiency of financial operations and reducing fraud risks.
Global Trends in Stablecoin Regulation
Hong Kong's regulation aligns with a global trend aimed at establishing secure and structured frameworks for stablecoins, paralleling initiatives underway in Europe.
The introduction of the stablecoin ordinance in Hong Kong opens new opportunities for the digital asset market, providing higher standards of regulation and security.
