Hong Kong Rolls Out Full-Reserve Stablecoin Regulatory Framework with Selective Licensing to Boost Digital Finance Leadership.
International
On May 21, 2025, Hong Kong's Legislative Council passed the landmark Stablecoins Bill to regulate fiat-referenced stablecoins. The regime mandates full-reserve backing, strict redemption rights, and licenses from the Hong Kong Monetary Authority (HKMA), positioning the region as a global digital finance hub.
- Under the Stablecoins Ordinance-effective August 1, 2025-any issuer of fiat-referenced stablecoins (including those backed by the Hong Kong dollar) must be licensed by the HKΜΑ. Licensees must maintain 100% backing of issued tokens, segregate client assets, and ensure redemption at par value upon request.
- Issuers must be incorporated in Hong Kong, maintain minimum paid-up capital (HK$25 million or 1% of issued stablecoin value), implement robust anti-money laundering (AML/CFT) protocols, and adhere to strong risk-management and governance norms. This includes periodic audits and transparent disclosures.
Main Point :- (i) The HKMA released final guidelines-Aincluding the supervision, AML/CFT, and 30 transitional policies-on July 29, 2025. Applications will be accepted through August-September 2025, with the first licenses expected in early 2026, initially 9 limited in number.
(ii) This regulatory framework positions Hong Kong ahead of peers like the EU (MICA) and the US in stablecoin supervision-particularly with bankruptcy remoteness protections, redemption rights enforcement, and extraterritorial authority over HK dollar-backed issuers globally.
(iii) Following the new licensing regime, over US$1.5 billion was raised by HK-listed fintech companies in July 2025 to build stablecoin and blockchain payment platforms. Investments surged as investor enthusiasm grew for Hong Kong's regulated fintech roadmap.
____________________________
