Against the backdrop that most stablecoin policies around the world remain at an ideal stage, Hong Kong has taken decisive action. With the entry into force of the Stablecoin Ordinance (Cap. 656) on August 1, 2025, Hong Kong is no longer merely engaged in theoretical regulation but is implementing it in practice.
This marks a watershed not only for Hong Kong but also for the entire Web3 ecosystem in Asia. By enacting legislation to issue enforceable licenses for fiat currency-backed stablecoins, Hong Kong positions itself as a platform providing regulatory support for serious builders and institutions in a long-volatile and legally ambiguous field.
The goal is not merely to manage stablecoins, but to rebuild trust in digital finance.
The Stablecoin Ordinance was passed by the Legislative Council of Hong Kong in May 2025 and was officially gazetted in June of the same year, officially establishing the framework of the previous regulatory sandbox. According to this framework, any institution that issues fiat reference stablecoins must obtain a license. More importantly, they must meet the requirements that are in line with traditional financial rules: fully backed by fiat currency reserves or liquid assets, mandatory disclosure, auditing, and anti-money laundering/Know Your Customer (KYC) controls.
The Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong currently jointly supervise this ecosystem. Their respective responsibilities - financial system risks and investor protection - are intertwined through a common governance mechanism. In an industry still plagued by unregulated collapses, such a level of coordination is extremely rare and increasingly necessary.
What Hong Kong offers is not unregulated innovation but regulated innovation.
Although this regulation directly applies to entities operating in Hong Kong or targeting Hong Kong, its influence has extended to the entire region. For many years, Web3 builders in Asia have been dealing with regulatory ambiguity. Hong Kong's clear and executable framework now offers an expandable model.
Global participants have also noticed this. HSBC, Standard Chartered and the Fintech Alliance are piloting tokenization, cross-border payslips and inter-bank settlements - all built on a regulated stablecoin track.
Important details
The framework of Hong Kong is not all ambitious goals, but rather detailed and binding.
In addition, the Hong Kong Monetary Authority is actively soliciting feedback through its stablecoin consultation process, which is open until June 30, aiming to understand how best to implement issuer requirements and anti-money laundering/anti-terrorist financing control measures.
With the entry into force of this regulation, compliance will no longer merely be a differentiating factor but an entry cost. Projects that are still operating under the offshore model only, experimental linkage or loose reserve management model will need to be re-evaluated.
In order to operate under the Hong Kong system, the issuer needs:
This will not only affect new stablecoins, but also reshape the architecture of DeFi protocols, foreign exchange payment platforms and tokenized asset systems.
With August 1, 2025 designated as the enforcement date, the window period for non-compliant operations is about to close. The market may see:
The rules are now in place. The infrastructure is under construction. The first batch of regulated stablecoin issuers are expected to go online in the fourth quarter of 2025.
If you are building stablecoins, foreign exchange, tokenization or DeFi in Asia, then there is no longer the question of whether adaptation is needed.
It's just how fast the speed is.
Understand the specific requirements for issuing regulatory-grade stablecoins under the 2025 framework of the Hong Kong Monetary Authority. Whether you are a mature institution or an agile fintech company, this guide can help you quickly advance compliance, infrastructure construction and listing execution.
