- Hong Kong sets stablecoin regulations, affecting issuers starting August 2025.
- HKMA leads the framework; licensing is mandatory.
- Anticipated effects on stablecoin issuance and market dynamics.
The Hong Kong Monetary Authority (HKMA) has finalized a stablecoin regulatory framework, effective August 1, 2025, mandating licensing for issuers targeting the Hong Kong market.
This initiative establishes a new precedent in Hong Kong’s financial landscape, potentially reshaping market participation and influencing the global approach to stablecoin regulation.
The Hong Kong Monetary Authority (HKMA) has established a stablecoin regulatory framework, effective August 1, 2025. This is the first law of its kind in Hong Kong, passed under the Stablecoins Ordinance by the Hong Kong Legislative Council.
HKMA, enacting the regulation, will mandate licensing for fiat-referenced stablecoin issuers targeting the Hong Kong market. As noted in their press release, “Applications are to be submitted by specified dates.”
Immediate implications may arise for the financial sector, impacting traditional banks and technology firms aiming for license approval. The HKMA alerts the public against unauthorized license claims.
The framework introduces licensing, reserve requirements, and Anti-Money Laundering (AML) protocols. Eddie Yue, Governor of HKMA, emphasized observing legal guidelines highlighted by official statements.
“The Hong Kong Monetary Authority (HKMA) published today (29 July) the following documents for the implementation of the regulatory regime for stablecoin issuers, which will come into effect on 1 August 2025.” – Eddie Yue, Governor, Hong Kong Monetary Authority (HKMA)
This measure aligns with other jurisdictions, such as Singapore and the EU. It targets fiat-referenced stablecoins like USDT and USDC and influences the broader DeFi ecosystem indirectly. Experts anticipate technological and regulatory interactions resulting from these changes.
