Hong Kong has introduced a new stablecoin regulation that will come into effect on August 1, 2025. This law, known as the Stablecoin Ordinance, was passed by the Legislative Council of Hong Kong.
Passage of the Stablecoin Ordinance
The Legislative Council of Hong Kong approved the Stablecoin Bill on May 21, 2025. The new law aims to regulate fiat-referenced stablecoins.
Role of HKMA in New Regulation
The Hong Kong Monetary Authority (HKMA) will oversee the licensing of stablecoin issuers. HKMA has also issued guidelines for AML/CFT compliance.
Expected Market Impacts
The opening of the market for institutional investors is one of the main reasons why increased activity in the stablecoin market is expected. The ordinance may create more attractive conditions for both local and international players in the digital asset market.
Thus, the introduction of Hong Kong's stablecoin law may mark a significant milestone in the regulation of digital assets and increase investor confidence.
