Hong Kong is set to introduce new requirements for stablecoins, effective August 1, 2025, as part of its push for stricter regulatory oversight.
Licensing for Stablecoins in Hong Kong
The Stablecoin Ordinance, initiated by the **Hong Kong Monetary Authority (HKMA)**, requires fiat-backed stablecoin issuers to receive pre-approval before submitting their applications for licensing. Only those companies that meet established criteria will be issued application forms. Affected stablecoins will include those pegged to fiat currencies like HKD and USD. Retail availability will be limited to licensed issuers, while non-licensed offerings will be restricted to professional investors.
Historical Context and Price Data
Hong Kong previously introduced a licensing regime for virtual asset platforms in June 2023, significantly influencing compliance trends in the crypto exchange sector. As of July 19, 2025, Ethereum (ETH) has a market cap of $430.53 billion with a 24-hour trading volume of $41.53 billion. Ethereum's price is recorded at $3,566.59, showing a notable 90-day gain of 124.37%, despite a short-term 1.35% dip in the last 24 hours.
Expert Insights and Analysis
According to Coincu research, the stablecoin ordinance is expected to set a global standard for regulatory actions in this sector, aligning with comprehensive global efforts. Observing regulatory trends, stringent AML/CTF compliance measures may significantly shape the landscape for fiat-backed stablecoins.
The introduction of the stablecoin ordinance in Hong Kong represents a significant step toward creating a more organized and secure environment for digital assets, along with increasing oversight of issuers in the future.
