- Hong Kong’s new law requires stablecoin issuers to obtain a license.
- Stringent requirements include reserve management and compliance.
- Aligns with global trends to regulate the crypto market efficiently.
Hong Kong legislated the Stablecoin Ordinance on May 30, 2025, regulating issuers of stablecoins pegged to the Hong Kong dollar through licensing. This introduces a new legal framework impacting the financial landscape for digital assets in the region.
The ordinance is pivotal for Hong Kong’s crypto landscape, establishing compliance protocols including asset management and anti-money laundering measures, expected to stabilize investor involvement and market activities.
Hong Kong’s New Licensing Standards for Stablecoin Issuers
The ordinance introduces a licensing requirement for stablecoin issuers pegged to the Hong Kong dollar. Proposed by the Hong Kong Monetary Authority, it mandates compliance in reserve asset management and anti-money laundering practices. Key figures like the Legislative Council have yet to comment publicly.
Changing regulatory measures now require issuers to meet stringent evaluations and legal protocols, promoting a transparent and stable market while potentially limiting unlicensed foreign participants. This system aims to boost investor confidence by providing legal clarity.
Market reactions have been mixed. Some anticipate a boost in local institutional investments due to enhanced security, while others fear exclusion of current players unable to meet new compliance standards. Consultations are ongoing, even as no direct responses from industry leaders have been recorded as of May 30.
Expert Insights and Historical Comparisons
Did you know? Hong Kong’s ordinance resembles the European Union’s MiCA regulation, aiming to integrate stablecoins within a secure financial framework, historically increasing institutional participation.
As of May 30, 2025, Tether USDt maintains a stable price of $1.00 with a market cap of formatNumber(153106259510, 2), representing 4.61% market dominance, CoinMarketCap reports. Trading volumes show robust activity at formatNumber(100297330248, 2), despite minor price fluctuations over 90 days.
Coincu’s research analysts predict stronger trust in Hong Kong’s crypto sphere due to the ordinance. Such measures can spur technological adoption and institutional interest, fostering a regulated environment for innovative financial products.
“The Government welcomed the passage of the Stablecoins Bill by the Legislative Council today (21 May) to establish a licensing regime for fiat-referenced stablecoins (FRS) issuers in Hong Kong, to further enhance Hong Kong’s regulatory framework on virtual-asset (VA) activities, thereby fostering financial stability and encouraging financial innovation.” – HKMA Press Release
Source: https://coincu.com/340677-hong-kong-stablecoin-law-2025/