Catenaa, Wednesday, May 21, 2025- Lawmakers in Hong Kong passed landmark legislation Wednesday to establish a licensing regime for stablecoin issuers, becoming one of the first global financial hubs to formalize oversight of fiat-referenced digital assets.
The “Stablecoins Ordinance,” passed in its third reading by the Legislative Council, mandates that any entity seeking to issue fiat-backed stablecoins in the region must obtain a license from the Hong Kong Monetary Authority (HKMA).
The law is expected to come into force later this year following further regulatory consultations.
The ordinance outlines strict requirements for reserve asset management, redemption mechanisms, client asset segregation, and anti-money laundering compliance.
Issuers must also maintain robust risk management and token value stabilization systems.
The Ordinance adheres to the ‘same activity, same risks, same regulation’ principle,” said Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury.
Legislator Johnny Ng, a member of the bill’s committee, said the law is a foundational step in Hong Kong’s broader Web3 vision.
The move follows Hong Kong’s 2023 rollout of a licensing regime for virtual asset trading platforms and its stablecoin sandbox initiative, which includes firms like Standard Chartered and Animoca Brands.
The legislation’s passage comes just as the US Senate advanced its own stablecoin bill, signaling growing international competition to regulate the sector and attract crypto industry players.
