- Stablecoin regulation enacted in Hong Kong, effective August 2025.
- Regulated by HKMA under new guidelines.
- Potential boost in institutional crypto market activity.
Hong Kong’s new Stablecoin Ordinance will take effect on August 1, 2025, as passed by the Legislative Council with regulation by the HKMA.
Stablecoin Regulation in Hong Kong
The legislative body approved the Stablecoins Bill on May 21, 2025. This bill was gazetted as the Stablecoins Ordinance with the aim to regulate fiat-referenced stablecoins.
The Hong Kong Monetary Authority (HKMA) will oversee the licensing of stablecoin issuers. They issued guidelines for AML/CFT compliance, providing necessary regulations for market operators.
Expected market effects include increased institutional engagement and regulation-driven activities. These changes could position Hong Kong as a more attractive hub for digital assets and compliant investments.
The financial sector anticipates a positive response from international investors. Stablecoins such as USDT and USDC could see increased activity due to regulatory clarity and licensing requirements driving demand.
The ordinance may create a favorable environment for both local and global players, leading to enhanced compliance and market participation. A similar trend followed the EU’s MiCA framework, showing potential for growth.
Historical precedents such as MiCA exhibit positive institutional flows and increased market confidence. Clear regulations often lead to broader market adoption and stronger regulatory frameworks benefiting the digital economy.
“After the ordinance commences operation, the licensing regime will provide suitable guardrails for relevant stablecoin activities. It will be a milestone in facilitating the sustainable development of the stablecoin and digital asset ecosystem in Hong Kong.” — Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, Government of Hong Kong
The HKMA has also published the Guideline on Supervision of Licensed Stablecoin Issuers and AML/CFT consultation documents and is expected to release further guidance as needed.
