The Hong Kong Monetary Authority (HKMA) has released the documentation for the implementation of the regulatory regime for stablecoin issuers, effective as of 1 August 2025.
The HKMA has provided guidance for stablecoin licensing, emphasising capital, reserve, governance, and technology standards for issuers looking to operate in Hong Kong’s regulated digital asset market. The guidance also includes rules on money laundering and transitional measures for issuers of existing stablecoins.
Regulating stablecoins
The HKMA’s stablecoin administration is set to come into effect on 1 August 2025, with a bill on rules being passed in May 2025. With this law, Hong Kong sought to protect the general public and investors by enabling only licensed firms to advertise such assets. Additionally, the legislation created a risk-based, pragmatic, and flexible regulatory regime.
At the time of writing, 40 companies were waiting to apply for a stablecoin licence in Hong Kong; however, the regulator is allegedly expected to initially approve fewer than 10 applications. According to the HKMA, even if licensing will be an ongoing process, interested firms that see themselves as sufficiently prepared and seek to be considered early should apply to the regulator by 30 September 2025.
Furthermore, the HKMA outlined that market participants should exercise due caution in their public communications and refrain from making statements that could be misinterpreted or create unreasonable expectations. The regulator emphasised that, among other things, it is an offence under the Stablecoins Ordinance to claim oneself as a licensee or an applicant. Additionally, the HKMA plans to continue to evaluate the effectiveness of measures, taking into account the evolving regulatory landscape.
As detailed by representatives from HKMA, a realistic timeline to start granting licences is early 2026. Also, due to Hong Kong’s well-established systems, achieving large-scale stablecoin adoption immediately in the early stages is not expected. Instead, the regulator intends to take a gradual approach and progressively support the digital transformation of Hong Kong.
