Hong Kong is taking active steps to strengthen its position in the global digital financial ecosystem by introducing new stablecoin regulations.
Hong Kong Sets Strict Rules for Stablecoins
As of August 1, Hong Kong's new Stablecoin Ordinance is officially in force. The Hong Kong Monetary Authority (HKMA) has issued detailed licensing guidelines covering capital requirements, custody, KYC checks, fiat reserves, and governance standards.
Any company wanting to offer stablecoins to the public must obtain a license from HKMA. The new law mandates that all stablecoins be fully backed by fiat currency, with backing held in regulated banks.
The rules emphasize real-time transparency and strong anti-money laundering controls.
Stablecoin Licences Expected in 2026
According to a report from Reuters, the first batch of stablecoin issuer licenses is expected to be issued early next year, rather than in 2025 as previously anticipated. No licenses have been issued yet, but the HKMA is open to early conversations with applicants until August 31. The official application deadline is set for September 30.
The regulator is moving slowly and carefully to ensure the long-term safety and sustainability of the stablecoin market.
Hong Kong Fintechs Raise over $1.5B
Fintech companies in Hong Kong are racing to raise funds as the city launches its new stablecoin licensing regime. In July alone, over $1.5 billion was raised by at least 10 publicly listed companies.
For example, OSL raised $300 million in just three days, attracting major investors like hedge funds and sovereign wealth funds. Major players like Dmall and SenseTime are also heavily investing in digital payments and blockchain technology.
If Hong Kong strikes the right balance between regulation and innovation, it could influence the next phase of the crypto industry on both regional and global scales.
