Hong Kong Announces Regulatory Framework for Stablecoins – Coincu

On June 7, 2025, Hong Kong unveiled a regulatory framework for stablecoins, emphasizing stable value by aligning with official currencies.

The regulation aims to anchor Hong Kong as a digital finance leader, tightening oversight on stablecoins pegged to the Hong Kong dollar.

Hong Kong Leads with Stablecoin Regulation Starting 2025

The Hong Kong Monetary Authority announced a framework to regulate stablecoins, enhancing transparency and security. The legislation was passed on May 21, 2025, focusing on stablecoins tied to Hong Kong’s currency, creating a comprehensive oversight system.

Effective from August 1, 2025, the regime mandates compliance for issuers pegging stablecoins to the HKD, reinforcing Hong Kong’s financial innovation strategy. This move facilitates a regulated environment for compliant financial operations while maintaining stability and investor trust.

Industry experts and stakeholders express cautious optimism, recognizing the regulatory clarity provided by the HKMA. Official sources state that this measure aligns with global regulatory trends, but some community members express concern about restricted innovation in a tightly regulated market.

Global Context: Hong Kong Follows Singapore in Digital Asset Rule

Did you know? The move by Hong Kong follows global trends, similar to Singapore’s MAS, which successfully regulated digital assets by fostering secure markets through comprehensive policy frameworks.

Tether USDt (USDT) maintains a stable value at $1.00. As of June 7, 2025, CoinMarketCap reports its market cap at $154.58 billion and a 24-hour trading volume of $66.07 billion, indicating a 31.80% decrease. Recent price tracking shows a 1.88% daily increase and a 24-hour trading volume of $66.07 billion.

Coincu’s research team highlights potential tectonic shifts in digital finance, expecting increased collaborations between traditional sectors and digital assets, driven by regulatory clarity. Historical data suggest a possible uptick in HKD-pegged stablecoins, providing industry-standard compliance incentives.

Christopher Hui, Secretary for Financial Services and the Treasury, Hong Kong Government, stated, “The ordinance mainly aims to supervise activities involving stablecoins, and to introduce a licensing regime for regulated stablecoin activities.”