Hong Kong Implements Stablecoin Licensing Framework

The Hong Kong Monetary Authority, in collaboration with the Financial Commissioner, has launched a stablecoin regulatory framework effective August 1, 2025, impacting fiat-referenced stablecoin issuers.

This framework is pivotal as it positions Hong Kong as a leader in virtual asset regulation, affecting major stablecoins like USDT and USDC, while enhancing investor protection.

Hong Kong Sets August 2025 for Stablecoin Licensing

The Hong Kong Monetary Authority has introduced a new regulatory framework, mandating that institutions must obtain licenses to conduct stablecoin activities. This policy enables preliminary discussions ensuring each applicant understands the licensing process and criteria. Stablecoins compliant with the framework can be offered to Hong Kong’s retail market, aiming to boost institutional confidence.

Global investors are watching the Hong Kong regulations closely, with a focus on compliance and market safety. Institutional participation is anticipated to increase, potentially reshaping the regional digital asset landscape.

Did you know? Singapore’s 2020 Payment Services Act inspired frameworks like Hong Kong’s, fostering similar stablecoin compliance models.

Tether and Others Face New Regulatory Standards

Did you know? Singapore’s 2020 Payment Services Act inspired frameworks like Hong Kong’s, fostering similar stablecoin compliance models.

CoinMarketCap data shows Tether (USDT) maintains a stable price of $1.00 with a market cap of formatNumber(163652902202, 2) and a 24-hour trading volume of formatNumber(122301777787, 2). Tether’s price remained largely unchanged over recent weeks.

The Coincu research team underscores the framework’s potential to set a benchmark for Asia’s digital markets, likely encouraging further regulatory adoption across other regions.