Hong Kong to Implement Stablecoin Ordinance on August 1, 2025

Hong Kong authorities, led by the Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau, confirmed the commencement of the Stablecoin Ordinance on August 1, 2025, introducing a structured licensing regime within the region.

Industry experts view the ordinance as a significant regulatory framework, guiding stablecoin activities and potentially reshaping the digital asset ecosystem in Hong Kong, reminiscent of recent global regulatory movements.

Hong Kong Restricts Stablecoin Licenses to 3-4 Issuers

The Stablecoin Ordinance aims to establish licensing requirements for stablecoin issuers in Hong Kong, affecting both payment institutions and major technology companies. Experts predict 50 to 60 applicants with expectations that only 3 to 4 licenses will be granted initially. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasized the ordinance’s role in providing robust regulatory guardrails for the stablecoin market.

Effective August 1, 2025, only stablecoins linked to the Hong Kong dollar and the US dollar from licensed issuers can be traded on Hong Kong exchanges. This change will stop unlicensed stablecoins from trading on these platforms.

“After the Ordinance commences operation, the licensing regime will provide suitable guardrails for relevant stablecoin activities. It will be a milestone in facilitating the sustainable development of the stablecoin and digital asset ecosystem in Hong Kong.” – Christopher Hui, source

Market reactions have been muted, with limited public commentary from industry leaders. Regulatory clarity from Hong Kong is seen as pivotal for institutional engagement, though broader community reactions remain cautious as stakeholders assess the potential impacts.

New Licensing Aligns with Global Regulatory Trends

Did you know? Hong Kong’s approach echoes the EU’s MiCA framework, which led to a consolidated stablecoin market in Europe, often cited as driving increased institutional adoption.

According to CoinMarketCap, Tether USDt (USDT) maintains its value at $1.00, with a market cap of $159.583 billion and a 4.27% market dominance. Over the past 90 days, Tether’s price changes were minimal, illustrating stable pricing, as of July 14, 2025.

Coincu researchers caution that Hong Kong’s regulatory clarity aligns with global trends and may further consolidate stablecoin issuance. Data reveals that historical precedents show such regulations effectively narrow issuer pools, favoring entities with significant compliance resources.