Hong Kong’s Financial Secretary, Paul Chan Mo-po, confirmed that the stablecoin ordinance is set to come into effect on August 1, 2025, making Hong Kong the first in the world with a formal regulation for stablecoins.
The ordinance was passed by Hong Kong’s Legislative Council on May 21, 2025, establishing that any entity or individual wishing to issue a fiat-referenced stablecoin (FRS) must obtain a license from the Hong Kong Monetary Authority (HKMA).
Only authorized institutions will be allowed to offer FRS, thereby enabling retail investors’ access to stablecoins. The regulatory framework aims to safeguard the interests of the public and investors and restricts advertising for unlicensed issuers.
Mo-po emphasized Hong Kong as a testing ground for China’s financial innovations and a potential launch site for Yuan-pegged stablecoins for cross-border transactions. The city’s offshore Yuan liquidity pool is valued at approximately 1 trillion Yuan (around $139 billion).
The licensing requirements established by the HKMA address essential areas, including reserve asset management and effective safeguards against fraudulent activities.
Hong Kong’s stablecoin regulation is now law. Starting Aug 1, 2025, a license from HKMA is required to issue any fiat-pegged stablecoin. — Shyft Network (@shyftnetwork) June 23, 2025.
The ordinance stipulates that issuers must ensure stablecoin holders can redeem their tokens at par value under fair conditions.
Key Takeaways
- The effective date for Hong Kong’s Stablecoin Ordinance begins in August.
- Issuers of stablecoins must be licensed by HKMA.
- Hong Kong is positioned as a key player in internationalizing the Yuan through regulated stablecoins.
