On August 1, 2025, the Hong Kong Stablecoin Regulation Bill will officially take effect as scheduled.This marks the comprehensive implementation of a licensing and regulatory system for fiat stablecoin issuers in Hong Kong, further improving the legal and regulatory framework for virtual assets in the region, and establishing a standardized basis for industry innovation while maintaining financial stability.
According to the core regulatory requirements, any entity issuing fiat stablecoins within Hong Kong, or issuing stablecoins outside Hong Kong but claiming to be pegged to the Hong Kong dollar,must obtain a license from the Hong Kong Monetary Authority before conducting business.Licensed entities must strictly comply with core regulatory requirements such as reserve asset management and redemption mechanisms, including establishing a customer asset segregation system, maintaining a sustainable stability mechanism, and ensuring redemption of stablecoin holders at face value under reasonable conditions.Additionally, licensed entities must fully meet anti-money laundering and counter-terrorist financing compliance standards, establish a robust risk management system, fulfill information disclosure obligations, undergo independent audit supervision, and ensure key personnel meet "fit and proper" qualification requirements. The Monetary Authority will conduct further consultations on implementation details based on market practices to continuously optimize regulatory effectiveness.
The licensing system will provide better protection for the public and investors.The regulation specifically states that only designated qualified licensed institutions are eligible to sell fiat stablecoins in Hong Kong, and only stablecoins issued by licensed issuers can be sold to retail investors. To prevent fraud risks, the regulation establishes comprehensive advertising supervision rules, allowing advertising and promotional activities related to licensed fiat stablecoins only during all periods, including a six-month non-violation period.Regulatory authorities remind citizens to maintain a professional and cautious attitude when receiving any fiat stablecoin-related advertisements or information, and fully understand the compliance prerequisites.
It is reported that the Hong Kong Legislative Council approved the bill on May 21, 2025, and it officially takes effect today. The implementation of this system will help Hong Kong develop a "standardized and orderly innovative" approach in virtual asset regulation, strengthening its institutional competitiveness as an international financial center.
