Starting from August 1, 2025, Hong Kong's Stablecoin Regulation will officially take effect, and the issuance of stablecoin licenses is being prepared.
Author: Bibi News
Cover: Photo by Shubham Dhage on Unsplash
Starting from August 1, 2025, Hong Kong's Stablecoin Regulation will officially take effect, and the issuance of stablecoin licenses is being prepared.
The Hong Kong Monetary Authority is opening stablecoin issuance license applications, with dozens of institutions (including JD Chain Technology, Circle Innovation Technology, Standard Chartered Bank, etc.) set to apply for stablecoin issuer licenses, marking the official implementation stage of stablecoin development in Hong Kong.
Previously, the head of the Hong Kong Monetary Authority stated that only a single-digit number of licenses would be approved initially. Hong Kong will implement a strategy of strict initial control followed by gradual relaxation. The implementation of Hong Kong stablecoins is proceeding methodically.
Here are 7 key pieces of information:
One, Hong Kong Will Implement Stablecoin Issuer Regulatory System
On May 21, Hong Kong passed the Stablecoin Regulation Draft, establishing a licensing system for fiat stablecoin issuers in Hong Kong to improve the regulatory framework for virtual asset activities, maintain financial stability, and promote financial innovation.
On July 29, the Hong Kong Monetary Management Authority released the following documents regarding the stablecoin issuer regulatory system to be implemented from August 1, 2025:
* Consultation Conclusion and Guidelines for Licensed Stablecoin Issuers;
* Consultation Conclusion and Guidelines for Anti-Money Laundering and Counter-Terrorist Financing (Applicable to Licensed Stablecoin Issuers);
* Summary of the Licensing System and Application Procedures;
* Summary of Transitional Provisions for Existing Stablecoin Issuers;
The Guidelines for Licensed Stablecoin Issuers are the core, and the two sets of guidelines will be gazetted on August 1, 2025. With the formal implementation of the regulatory system, market participants should comply with the Stablecoin Regulation and related guidelines.
Two, Application Period: First Phase from August 31, 2025 to September 30, 2025
Institutions interested in applying for licenses should contact the Monetary Authority by August 31, 2025 (Sunday) or before via [email protected] to allow the Monetary Authority to convey regulatory expectations and provide appropriate feedback.
Mature institutions that believe they are well-prepared and wish to be considered early should submit their applications to the Monetary Authority by September 30, 2025 (Tuesday) or before. Licensing will continue.
Three, Hong Kong Stablecoin Holders Must Be Verified
All Hong Kong compliant stablecoin holders must have their identities verified, essentially implementing a real-name system to enhance anti-money laundering and financial crime risk prevention. The Assistant Chief Executive of the Hong Kong Monetary Authority, Chen Jinghong, pointed out that this arrangement is stricter than the previous "whitelist" system in the anti-money laundering consultation document, but may be relaxed in the future if technology matures.
Wu Jiezhuang stated that the Hong Kong Monetary Authority will indeed implement KYC rules, but the specific implementation method has not been fully determined. The specific plan will be submitted by stablecoin issuers to the Monetary Authority for satisfaction and approval. KYC rules for stablecoins will be stricter than those for cash.
Four, Stablecoin Regulation Provides 6-Month Transition Period, Compliant Entities Can Obtain Temporary Licenses
On July 29, the Hong Kong Monetary Management Authority announced that after the Stablecoin Regulation takes effect on August 1, a 6-month transition period will be set, with existing stablecoin issuers classified as follows:
- Those meeting regulatory requirements can obtain temporary licenses;
- Those unable to meet standards within 3 months must cease operations within 4 months;
- Those not meeting licensing standards must terminate operations within 1 month of receiving notice.
Regulatory requirements include full reserves, same-day redemption processing, establishing an entity in Hong Kong, and maintaining sufficient financial resources. Initially, only a few licenses will be issued, with requirements for issuers to implement customer due diligence, transaction monitoring, and other compliance measures. Violators will face fines, suspension, or revocation of licenses.
Five, First Stablecoin Issuer License to Be Issued in Early Next Year, with High Threshold
According to the Daily Economic News, the Deputy Chief Executive of the Hong Kong Monetary Authority, Chen Weimin, stated at a technical briefing on the stablecoin issuer regulatory system that the number of stablecoin issuer licenses in the first phase is uncertain and depends on the quality of application materials submitted by applicants. He expects the first stablecoin issuer license to be issued in early next year and emphasized that "the threshold for approval is very high".
Six, Hong Kong Maintains Open Attitude Towards Fiat Currency Pegs for Stablecoins
The Deputy Chief Executive of the Hong Kong Monetary Authority, Chen Weimin, stated that they maintain an open attitude towards fiat currencies. Stablecoin issuers can apply for licenses for stablecoins pegged to a specific fiat currency or a basket of fiat currencies, with the key requirement being to specify the currency type in the application.
Seven: Currently No License Issued, Any Stablecoin Issuer Claiming to Be Licensed Is Illegal
According to the Stablecoin Regulations, falsely claiming to be a license holder or applicant is illegal. As of today, the Hong Kong Monetary Authority has not issued any licenses. The public can refer to the licensed stablecoin issuers published on the Monetary Authority's website in the future and remain vigilant about any stablecoin issuers claiming to be regulated or licensed in Hong Kong, as well as those claiming to be applying for a license. Holders of unlicensed stablecoins must bear the risks themselves.
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