Hong Kong Implements Regulatory Framework for Traditional Cryptocurrencies Pegged to National Currencies
Hong Kong Introduces New Regulations for Stablecoin Issuers
Starting August 1, 2025, any person issuing stablecoins pegged to the Hong Kong dollar, either within the city or abroad, will be required to obtain a license from the Hong Kong Monetary Authority (HKMA) under the Stablecoins Ordinance (Cap. 656) [1][2]. This move marks a significant shift towards regulating stablecoin activities, positioning Hong Kong as a global leader in responsible crypto growth.
Under the new licensing regime, licensed issuers will be subject to HKMA regulatory expectations detailed in the Guideline on Supervision of Stablecoin Issuers and the Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) Guideline. Compliance with these guidelines includes operational, financial, and governance standards ensuring prudential regulation and risk management [2][4].
One key requirement is the full-reserve requirement, which ensures that each stablecoin issued is backed one-for-one by the referenced fiat asset. This measure aims to maintain stability and protect users [3]. Issuers must also submit extensive documentation, including independent assessments of regulatory compliance and smart contract audit reports, to demonstrate operational integrity and technical security [1].
To promote transparency, licensed issuers will be listed in a public register maintained by the HKMA [2]. The new rules apply to both local and international companies offering stablecoins pegged to the Hong Kong dollar or doing business with Hong Kong residents.
The new regulations offer stability and trust, something the crypto industry has lacked for years. By implementing these measures, Hong Kong aims to prevent high-profile failures of stablecoins from occurring within its jurisdiction [5]. For users, this shift means fewer empty promises and more accountability in stablecoin usage [6].
The new regulations align with global standards like the U.S. GENIUS Act and the EU's MiCA framework, emphasizing not only regulatory compliance but also technological robustness, such as programmability of stablecoins and integration with real-world financial systems [3].
Some crypto firms may view the new rules as red tape, but for serious long-term players, the benefits are clear. The new regulations are designed to promote innovation while maintaining accountability [7]. Oversight for the new law will come from the Financial Services Commissioner and the Hong Kong Monetary Authority (HKMA) [8].
The HKMA plans to consult further on the fine print of the new law [9]. The first licenses are expected to be granted by early 2026 [4]. With these new regulations, crypto in Hong Kong has entered a new era, no longer a free-for-all. People can now put money into stablecoins knowing there are real rules to ensure safety [10]. The new law is part of the rollout of the "Stablecoin Ordinance," aiming to balance innovation with tighter control [11]. Non-compliance with these standards may lead to removal from the market [12].
- The new regulations in Hong Kong, introduced in 2025, require any person issuing stablecoins pegged to the Hong Kong dollar to obtain a license from the Hong Kong Monetary Authority (HKMA), positioning Hong Kong as a global leader in responsible crypto growth and maintaining stablecoin activities within a regulated environment.
- In line with global standards, the new regulations for stablecoin issuers in Hong Kong emphasize not only regulatory compliance but also technological robustness, such as programmability of stablecoins and integration with real-world financial systems, ensuring the maturity and credibility of the crypto industry.
- Issuers of stablecoins in Hong Kong, once licensed, will be subject to various guidelines detailing operational, financial, and governance standards, including the full-reserve requirement, to maintain stability, protect users, and ensure compliance with anti-money laundering and counter-financing of terrorism (AML/CFT) regulations.
- As part of the new era for crypto in Hong Kong, licensed issuers will be listed in a public register, promoting transparency and trust, offering users fewer empty promises and more accountability in stablecoin usage, while still encouraging innovation within the industry through responsible investing in technology and finance.
