The Government of the Hong Kong Special Administrative Region (SAR) confirmed the implementation of its first comprehensive Stablecoin Ordinance on August 1, 2025. The new framework is a major milestone to the creation of a safer and more regulated digital asset space in the region.
Mandatory Licensing to be Required for Stablecoin Issuers
The official announcement of the government says that firms interested in issuing stablecoins in the denomination of the Hong Kong dollar or located in the jurisdiction will be required to secure a license under the new ordinance. The action will ensure only qualified parties issue stablecoins.
The law also bans the advertising of stablecoins to licensed issuers, a move to prevent fraudulent promotion and build investor confidence.
Government Aims at Enhanced Industry Clarity
Christopher Hui, Secretary for Financial Services and the Treasury, further stated that summary operating guidelines will be published with the ordinance to assist crypto firms in accommodating the new regulatory regime.
“The licensing regime will provide proportionate regulation to stablecoin relevant business, a milestone in facilitating the stablecoin and digital asset eco-system sustainable development in Hong Kong,” added Hui.
New Rules Have Provisions for Professional Investors
The authorities added that a special clause authorizes the issuance of stablecoins to professional investors by authorized persons prior to obtaining a license. Rules governing the participation of retail investors, however, remain unclear.
The government of the SAR also announced that it will put out two notices before the Legislative Council on June 11 to initiate the pre-formulation and post-vetting process of the bill.
Hong Kong Gains Ground Over Regional Rivals
This rule-making milestone places Hong Kong ahead of other Asian regions like South Korea, which are at the starting point of building similar legislation for local stablecoins. The expedited timeline is a testament to the territory’s strategic ambitions to be an Asian crypto regulatory leader.
