Hong Kong stablecoin regulation

Key Points:* Stablecoin issuance in Hong Kong to be regulated by HKMA in 2025.

• Licensing regime affects fiat-backed stablecoins, begins August 1, 2025.
• Public registry of licensed issuers planned; no licenses yet issued. The Hong Kong Monetary Authority will enforce the Stablecoin Ordinance beginning August 1, 2025, requiring stablecoin issuers to obtain a license, impacting fiat-pegged assets and market dynamics.

This regulatory move positions Hong Kong as a leader in digital asset oversight, potentially affecting stablecoin liquidity and exchange operations during the transitional compliance phase.

Licensing Framework for Fiat-Backed Stablecoins by 2025

Hong Kong’s Stablecoin Ordinance will categorize the issuance of fiat-backed stablecoins as a licensing activity starting August 1, 2025. HKMA details include strict regulatory guidelines for those seeking licenses. As of now, no issuer has been licensed. This initiative places Hong Kong among the first to advance such a framework, highlighting the region’s goal to enhance financial regulation.

Market players will face mandatory compliance with regulations upon application. The ordinance is expected to influence assets like USDT and USDC, which must align with new standards. The prescribed six-month transition allows existing issuers some preparation time.

“We have also just completed the legislation of stablecoins, which will come into effect on August 1, making Hong Kong one of the first jurisdictions in the world to establish a statutory regulatory framework for stablecoins.” — Paul Chan, Financial Secretary, Hong Kong Government

Hong Kong’s Bold Move to Lead Global Stablecoin Regulation

Did you know? Hong Kong is set to become one of the earliest jurisdictions to establish a comprehensive regulatory framework for stablecoins, moving to actively license and supervise issuers amid global trends towards digital asset regulation.

Tether’s USDT, priced at $0.99, and with a market cap of $163,721,961,596.00, holds market dominance at 4.22% as recorded by CoinMarketCap. Its 24-hour trading volume moved at $119,983,801,955.00, noting a minor price decrease of -0.02%.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 11:56 UTC on July 31, 2025. Source: CoinMarketCap The Coincu research team suggests that Hong Kong’s licensing move may lead to improved transparency and compliance, potentially impacting stablecoin market operations globally. This decision is part of a larger trend, reflecting pressures to ensure AML/CFT compliance in digital assets.

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