Catenaa, Tuesday, July 1, 2025-Hong Kong will launch a new licensing regime for fiat-referenced stablecoins on August 1, setting strict rules for issuance and retail marketing in a move seen as supporting China’s de-dollarization push and reshaping the role of US dollar-pegged tokens in Asia.
The new framework, supervised by the Hong Kong Monetary Authority, mandates reserve-backed stability, par-value redemption, AML compliance, and local fund segregation.
Financial Secretary Paul Chan linked stablecoins to regional efforts to settle trade in local currencies, writing that they offer a cost-effective alternative to traditional systems. His remarks follow a visit to the World Economic Forum’s “Summer Davos” in Tianjin.
Analysts say the framework could deter global players like Circle and Tether, citing requirements for local reserves and operations.
Hong Kong’s framework also supports multi-currency issuance, aligning with China’s broader effort to internationalize the renminbi. The city remains the world’s leading offshore hub for RMB trade, bolstering Beijing’s ambition to reduce global reliance on the US dollar.
