Hong Kong Introduces Stablecoin Ordinance for August 2025

This ordinance will establish a licensing regime impacting stablecoin issuers, potentially stabilizing the market and boosting institutional interest.

Hong Kong’s government, with leadership from Christopher Hui, announced the Stablecoin Ordinance. Targeted for August 2025, the ordinance introduces a mandatory licensing regime for stablecoin issuers, particularly focusing on HKD-denominated coins. The Hong Kong Monetary Authority will set detailed requirements.

“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, Secretary for Financial Services and the Treasury, Government of Hong Kong SAR

Christopher Hui has highlighted the importance of regulation, stating that these measures will offer “suitable guardrails” for stablecoin activities, positioning Hong Kong as a leader in digital assets. Issuers and market participants should prepare for these changes starting from the enforcement date in 2025.

The ordinance is anticipated to impact the European Union’s MiCA framework, increasing institutional confidence and participation. However, initial market caution is expected as firms adapt to compliance requirements.

The introduction aims to position Hong Kong ahead of competitors such as South Korea in digital asset regulation. Such measures have historically enhanced institutional engagement, sparking renewed market interest after initial turbulence.

Financial and regulatory shifts are expected with clearer frameworks for stablecoins, potentially leading to increased liquidity and investment. Technological advancements may follow as firms innovate within the new legal structure. Historical trends suggest initial market hesitance typically gives way to broader acceptance once regulations stabilize.