Hong Kong Initiates Stablecoin Licensing, Aiding Crypto Regulatory Clarity

On August 1, 2025, Hong Kong’s Stablecoin Ordinance commenced, initiating a licensing framework for stablecoin issuers under the Hong Kong Monetary Authority’s oversight.

This regulatory move aims to position Hong Kong as a key player in the digital asset market, attracting institutional stakeholders and enhancing compliance assurance in stablecoin activities.

Stablecoin Ordinance Enforces Licensing for Issuers

The Stablecoin Ordinance, effective August 1, mandates all fiat-referenced stablecoin issuers in Hong Kong to apply for licenses under Hong Kong Monetary Authority supervision. The ordinance results from consultations with the Financial Services and Treasury Bureau.

“The licensing regime will provide essential regulatory clarity which is expected to attract institutional interest and enhance compliance among fiat-referenced stablecoin issuers,” said an unnamed source from the HKMA.

License applications are gaining popularity, with reports of high demand. Mainland companies have already engaged with the Hong Kong Monetary Authority exploring this opportunity.

Stablecoin Market Expected to Surge with Regulatory Clarity

Did you know? The European Union’s similar stablecoin regulations in 2024 paved the way for financial stability and market transparency in digital currency.

According to CoinMarketCap, USDC’s market cap stands at 64,199,461,523, with a trading volume of 12,239,100,179 over 24 hours, decreasing by 33.03%. The price remains stable at $1.00 as of August 2, 2025.

The Coincu research team notes that with clear regulatory guidelines now in place, institutions might witness increased confidence and security in Hong Kong for stablecoin endeavors.