On May 21, 2025, Hong Kong’s legislature passed a significant stablecoin bill, establishing a licensing regime for fiat-referenced stablecoin issuers. Under this new framework, any entity issuing stablecoins in Hong Kong or those backed by Hong Kong dollars, regardless of where they are issued that must obtain a license from the Hong Kong Monetary Authority (HKMA). The legislation outlines requirements for reserve asset management, redemption procedures, and risk controls, aiming to protect both the public and investors.
This move is part of Hong Kong’s broader strategy to enhance its competitiveness as a global hub for digital assets and to develop its own stablecoin. Financial Secretary Christopher Hui emphasized that the ordinance adheres to a risk-based approach under the principle of “same activity, same risks, same regulation.”
The regulation builds upon the HKMA’s existing stablecoin issuer sandbox project, which currently includes three active participants. The ordinance is expected to come into effect later this year.
Stay tuned with Yoyar for more updates on digital asset regulations and their implications for the tech and business landscape.
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