On August 1, 2025, the Hong Kong Legislative Council officially enacted the Stablecoin Regulation, establishing a comprehensive licensing and regulatory framework for stablecoin issuers. This new law mandates that stablecoins must be fully backed by highly liquid fiat reserves, a move designed to ensure financial stability and transparency.
Legislative Council member Chiu Tat-kan emphasized that the primary function of these stablecoins is to facilitate international payments, not to be used for speculation. The new rules are in line with international standards, with the aim of attracting legitimate stablecoin issuers while ensuring strong consumer protection.
While the new ordinance is in effect, no stablecoin issuers have been publicly licensed yet. The Hong Kong Monetary Authority (HKMA) has stated that a grace period of six months is being provided for existing issuers to comply. The HKMA is encouraging interested parties to contact them for guidance and has set a deadline of September 30, 2025, for those wishing to be considered for early licensing. The first licenses are not expected to be issued until early 2026. The local market is showing cautious optimism, awaiting official announcements from potential applicants.
August 2025, Cryptoniteuae
