Hong Kong Issues Stablecoin Regulation Effective August 2025
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Key Points: Hong Kong’s Stablecoin Ordinance begins August 1, 2025, affecting digital assets. Regulation to enhance cross-border payments in 2025. Licensing required for fiat-backed stablecoin issuers. On June 29, 2025, Hong Kong announced a Stablecoin Ordinance effective August 1, 2025, to regulate fiat-backed digital assets, according to Financial Secretary Paul Chan. The regulation aims to enhance cross-border payments, bolstering Hong Kong’s financial technology sector and aligning with international digital asset standards. Licensing Mandate for Stablecoin Issuers Starting August 2025 Financial Secretary Paul Chan has highlighted the regulation’s potential in “Digital Asset Development Policy Declaration 2.0”, stressing a need to address cross-border payment issues such as “slow speed and high costs”. The regulation will provide a framework for stablecoin use, enhancing financial efficiency. With these changes, Hong Kong will require stablecoin issuers to obtain licenses from the Hong Kong Monetary Authority, limiting issuance to approved entities. The regulation anticipates significant shifts in financial practices. “Strive to create a favorable market environment,” Chan stated, reducing fraud risks and ensuring consumer protection. Major players like JD.com and Ant Group show interest in stablecoin licenses, indicating industry engagement. Financial Secretary Chan emphasized integration with the real economy. “The stablecoin, particularly when it is referenced to fiat currencies, has many user case scenarios,” he noted, emphasizing the broad application beyond speculation. As Hong Kong emerges as a leader, “commitment to creating a favorable market environment” signals robust innovation. Global Trend: Hong Kong Joins MiCA in Regulating Stablecoins Did you know? Hong Kong’s regulation marks a pivotal moment, following Europe’s MiCA, showcasing a global trend toward secure and structured stablecoin frameworks. Tether USDt, trading at $1.00, holds a market cap of formatNumber(157603299164, 2). With a 24-hour trading volume change, its market dominance stands at 4.77%, CoinMarketCap reported. Despite a slight price decrease over 60 days, a…
Filed under: News - @ June 29, 2025 8:23 am