On May 21, the Hong Kong Legislative Council passed the Stablecoin Ordinance, which will take effect on August 1, 2025. The Hong Kong Monetary Authority will begin accepting license applications.
Competition for Crypto License in Hong Kong
The conditions for applications are open to institutions worldwide, increasing competition in the market. More than 40 companies have already submitted applications, with another dozen planning to do so.
These include:
- **JD CoinChain:** A cryptocurrency operating on a decentralized blockchain platform. - **Standard Chartered:** A multinational bank partnering with Animoca brand and HKT to create a joint venture that will apply for the HKMA license. - **Circle Innovation Technology Co.:** A non-profit organization providing technology solutions and innovation, also applying for a stablecoin license in Hong Kong. - **Ant International:** A global digital payment provider planning to apply for stablecoins to enhance blockchain operations and cross-border transactions.
Hong Kong Monetary Authority Open for License Application
The Hong Kong Monetary Authority (HKMA) will begin accepting stablecoin license applications from August 1, allowing investors to buy and sell virtual assets on licensed virtual asset trading platforms. This initiative aims to regulate fiat-referenced stablecoins and promote digital asset activities in the country.
"The passage of the Stablecoins Ordinance is a pivotal step. From August 1, 2025, all issuers of fiat-referenced stablecoins must be licensed by the HKMA and meet rigorous reserve, redemption, and AML standards," stated the Hong Kong Monetary Authority.
Uplifting Hong Kong’s Digital Asset Market Standard
The HKMA has set a range of mandatory requirements for stablecoin licenses, including:
- A minimum paid-up capital of at least HKD 25 million - Incorporation of a physical office in Hong Kong - Risk and reporting management compliance - Transparency and Security
These measures are mandatory for all applicants. With growing competition in the digital asset market, Hong Kong is raising its standards, positioning itself as a potential global crypto hub. The new regulations demonstrate that Hong Kong is aligning its standards with global agencies.
The passage of the Stablecoin Ordinance and the forthcoming opening of licensing create new opportunities for the cryptocurrency sector in Hong Kong. Strict adherence to standards is expected to enhance trust in digital assets and attract new investors.
