Catenaa, Saturday, June 14, 2025- Hong Kong will implement its new stablecoin regulatory framework starting August 1, 2025, following the ordinance’s ratification on May 30, officials have announced.
The law establishes a licensing regime for stablecoin issuers and related service providers operating in the city. Authorities expect the first licenses to be granted by year-end. Meanwhile, unlicensed issuers may only offer stablecoins to professional investors as defined under the Securities and Futures Ordinance.
Key provisions require issuers to maintain full reserves in high-quality, liquid assets such as cash, bank deposits, or government securities, denominated in the stablecoin’s currency. These reserves must be segregated from issuer funds, held in trust, and protected from creditor claims.
Issuers cannot pay interest on stablecoins but may provide non-interest incentives.
They must be locally incorporated, with key personnel based in Hong Kong, and meet minimum capital requirements of HKD 25 million or 1% of total stablecoin issuance, whichever is greater. Redemption at par within one business day under normal conditions is mandated.
The Hong Kong Monetary Authority is consulting on guidelines covering anti-money laundering and counter-terrorism financing measures.
Secretary for Financial Services and the Treasury Christopher Hui called the ordinance a “significant milestone” in strengthening Hong Kong’s digital asset ecosystem. The regulation positions the city as a global leader with one of the toughest stablecoin frameworks worldwide.
