Hong Kong authorities have announced the introduction of the Stablecoin Ordinance, set to take effect on August 1, 2025. This move will impact the digital asset market in the region.
Launch of Stablecoin Ordinance in Hong Kong
On August 1, 2025, the Stablecoin Ordinance, initiated by the Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau, will come into force. This law will establish clear licensing requirements for stablecoin issuers and could significantly alter the digital asset ecosystem in Hong Kong.
Licensing Restrictions for Issuers
The Stablecoin Ordinance stipulates that only 3-4 licenses will be granted to issuers in the initial phase, despite a predicted 50-60 applications. Christopher Hui, Hong Kong's Secretary for Financial Services and the Treasury, stated that the ordinance will provide the necessary regulatory framework for the stablecoin market.
Global Trends in Stablecoin Regulation
Hong Kong's licensing approach mirrors the EU's MiCA initiative aimed at consolidating the stablecoin market. This may lead to increased institutional interest in stablecoins, although broader community reactions remain cautious.
The introduction of the Stablecoin Ordinance in Hong Kong is a pivotal step in digital asset regulation, creating further barriers for market entry and clarifying conditions for key players.
