On August 1, 2025, Hong Kong will launch a new stablecoin licensing regime aimed at limiting market access.
New Stablecoin Licensing Framework
According to local reports, the licensing regime under the Hong Kong Monetary Authority (HKMA) will not be open to general applications at initial stages and will be invitation-based, allowing for better control over potential issuers.
Conditions for Potential Issuers
Citing unnamed sources, the HKMA will liaise with potential issuers beforehand to ensure they meet licensing requirements, including strict conditions such as robust risk controls and compliance with anti-money laundering laws.
Hong Kong's Future Plans
The Hong Kong administration continues to work on initiatives within the crypto sector, including future regulations for crypto trading platforms and OTC services. Financial Secretary Christopher Hui noted that the framework will help attract more international institutions to issue stablecoins in Hong Kong.
The new stablecoin licensing regime in Hong Kong reflects a carefully thought-out approach to regulating the crypto industry, aimed at creating a competitive and secure market.
