Hong Kong stablecoin legislation

Key Points:* The Hong Kong government announces stablecoin legislation effective August 1.

• Stablecoin issuers must obtain licenses from HKMA.
• Market reactions indicate cautious optimism among participants. Hong Kong’s Financial Secretary Paul Chan announced stablecoin legislation effective August 1, 2025. The regulation is designed to provide a stable market for issuers and users.

The legislation introduces clear guidelines for stablecoin issuance in Hong Kong, aimed at ensuring market integrity.

Hong Kong Mandates Licensing for Stablecoin Issuers

Hong Kong’s new stablecoin legislation is spearheaded by Paul Chan and Christopher Hui, who emphasized the importance of establishing clear regulations to facilitate stablecoin issuers’ operations. This move is part of broader efforts to enhance Hong Kong’s role as a digital asset hub.

The regulation requires stablecoin issuers to obtain HKMA licenses to operate legally in Hong Kong. This shift significantly restricts the market for unlicensed products, potentially displacing non-licensed stablecoins from local exchanges.

Paul Chan Mo-po, Financial Secretary, Hong Kong SAR Government, emphasizes the importance of clear regulations, stating: “clear regulations for the responsible development of digital assets,” with a goal to “ensure market integrity and foster responsible growth in the digital asset sector.”

Stablecoin Legislation to Strengthen Hong Kong’s Market Position

Did you know? Hong Kong’s stablecoin regulations mark the most significant financial legislation impact on the crypto landscape since its digital bond grant scheme, which spurred increased blockchain participation in the region.

According to CoinMarketCap, Tether USDt (USDT) maintains a price of $1.00, with a market cap of $157.71 billion, representing 4.77% of market dominance. Over the past 24 hours, its trading volume reached $55.55 billion, despite marginal price fluctuations of -0.01% within the same period.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 10:49 UTC on June 30, 2025. Source: CoinMarketCap Analysis by the Coincu research team suggests that the new legislation may enhance Hong Kong’s global competitive advantage. The focus on structured regulation could lead to increased market stability and attract institutional investors looking for secure digital asset environments. For more details, the government recently released a historic bill and draft licensee guidelines to support these regulatory measures.

The introduction of such progressive measures aligns with Hong Kong’s SFC roadmap aimed at the virtual asset regulation, demonstrating their proactive approach in embracing financial technology innovations.

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