Hong Kong aims to license stablecoins this year

Hong Kong aims to license stablecoins

Christopher Hui confirmed that the licensing process will begin after the Stablecoin Act, passed on May 21, 2025 by the Hong Kong Legislative Council, officially comes into effect on August 1, 2025. According to the plan, stablecoin issuers will need to apply for a license from

The Hong Kong Monetary Authority (HKMA), with strict requirements of 100% reserves in cash or government bonds, as well as compliance with anti-money laundering (AML) standards. Hui stressed that the initial number of licenses will be limited to “single digits” to ensure financial stability and investor protection, with the expectation of accepting applications as soon as the regulations come into effect.

Globalization of crypto regulations is underway, with Hong Kong aiming to license stablecoins as well as other countries such as the European Union (MiCA) and the United States (GENIUS Act 2025). This shows that Hong Kong is trying to balance financial innovation and risk management, especially after crypto scandals like FTX in 2022.

The special administrative region government is focusing on stablecoins pegged to fiat currencies such as HKD or USD to increase cross-border payments and reduce transaction costs, while reducing reliance on unregulated stablecoins such as USDT.

Hong Kong community response

The response from the crypto community, especially online chats, has been both cautiously optimistic and cautious. With the potential to attract major companies like Circle or Ripple, Hong Kong has a chance to become Asia’s stablecoin hub, according to many advocates.

Some argue that limiting licenses to “single digits” could reduce accessibility but also reduce the ability to ensure quality. However, some worry that the strict requirements could discourage small businesses or decentralized projects, reducing diversity in the local cryptocurrency ecosystem.

For investors, the licensing of stablecoins in Hong Kong could increase confidence in these products, especially if HKMA-approved stablecoins prove to be transparent and stable. This could spur capital inflows into Hong Kong’s cryptocurrency market, with the potential to boost the value of related tokens such as XRP or SOL if large companies get involved.

In terms of the market, the move could increase liquidity for stablecoin trading in the region, but the immediate impact may be limited by the limited number of licenses and the transition time to the new regulatory framework.

Evaluation and Conclusion

The Hong Kong Financial Secretary and Treasury’s target of issuing stablecoin licenses by 2025 is a strategic move that reflects the city’s ambition to become a leading digital financial hub. With the regulatory framework in place since August 1, Hong Kong is not only promoting innovation but also ensuring financial stability, albeit with a limited number of licenses.

However, success depends on the ability to overcome regulatory and regional competition challenges, as well as attract high-quality companies. In a rapidly growing cryptocurrency industry, this move lays the foundation for a sustainable stablecoin ecosystem that promises to bring great opportunities to investors and the market in the near future.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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