Hong Kong Establishes Licensing for Stablecoin Issuers

Paul Chan Mo-po, Hong Kong’s Financial Secretary, announced a new regulatory framework requiring stablecoin issuers to obtain licenses, effective August 1, 2025, to ensure market integrity and growth.

Paul Chan emphasizes the regulation’s necessity for responsible digital asset growth, affecting all stablecoin issuers seeking Hong Kong retail access.

Hong Kong’s Financial Secretary, Paul Chan Mo-po, announced the mandate for stablecoin issuers to acquire licenses. Effective August 1, 2025, the regulation targets all fiat-referenced stablecoins marketed within Hong Kong. The policy, stated during an interview with China Daily, underscores Hong Kong’s commitment to responsible financial sector development by balancing innovation with effective oversight.

Stablecoins pegged to fiat currencies, including Hong Kong Dollar-linked tokens, must comply with new licensing requirements. Paul Chan highlighted that the Hong Kong Monetary Authority will oversee the licensing, marking the first dedicated stablecoin licensing regime in the region.

“Any individual or entity seeking to issue a fiat-referenced stablecoin (FRS) in the jurisdiction, or any Hong Kong Dollar (HKD)-pegged token, [must] obtain a license from the HKMA.” — Paul Chan Mo-po, Financial Secretary, Hong Kong Special Administrative Region (HKSAR)

This licensing requirement could significantly impact market access for stablecoin issuers in Hong Kong. Only those satisfying Hong Kong Monetary Authority standards can serve the retail market, limiting access to unlicensed assets. While the policy is not yet active, stakeholder responses indicate cautious optimism about better market integrity and security.

The regulatory move affects all fiat-pegged stablecoins, like Tether and USDC, when offered in Hong Kong. Industry experts foresee similar regulations emerging globally, creating a benchmark for comprehensive stablecoin oversight. The approach aims to foster responsibility and sustainability in digital financing, impacting both local and global digital asset frameworks.

Hong Kong’s stablecoin licensing illustrates a structured regulatory approach combining financial oversight with innovation in the evolving digital asset landscape. The 2025 onset date offers issuers necessary adjustment time. Analysts predict potential global adoption of similar frameworks for stablecoin market regulation. Balancing regulation and growth is expected to encourage market legitimacy, enhance consumer protection, and drive long-term digital finance integration.