Hong Kong Stablecoin Ordinance Set for August 2025 Release

On July 19, sources reported that Hong Kong’s Stablecoin Ordinance will be implemented on August 1, 2025, introducing a new licensing process.

This regulatory move aims to ensure compliance in the stablecoin sector, impacting fiat-backed coins.

Hong Kong Mandates Licensing for Fiat-Referenced Stablecoins

The Hong Kong Stablecoin Ordinance will take effect on August 1, 2025. Implemented by the Hong Kong Monetary Authority (HKMA), this move mandates a specific licensing system under which fiat-referenced stablecoin issuers must be pre-approved for application. Stablecoin licenses won’t be freely available; prospective issuers will undergo advance communication with HKMA to confirm eligibility before receiving application forms. Only those meeting the basic qualifications will be issued forms.

Stablecoins affected by the Ordinance exclude native cryptocurrencies unless they are wrapped in fiat-referenced products. Affected stablecoins include those pegged to fiat currencies like HKD and USD, which will face licensing requirements. Retail availability of stablecoins will be limited to licensed issuers, while non-licensed offerings will remain restricted to professional investors.

“The Ordinance will be a milestone in facilitating the sustainable development of stablecoin and digital asset ecosystem in Hong Kong.” — Christopher Hui, Secretary for Financial Services and the Treasury

Historical Context, Price Data, and Expert Insights

Did you know? Historically, Hong Kong introduced a licensing regime for virtual asset platforms in June 2023, significantly influencing compliance trends in the crypto exchange sector.

Ethereum (ETH), as of July 19, 2025, holds a market cap of formatNumber(430530363305, 2) with a 24-hour trading volume of formatNumber(41525769838, 2). Data from CoinMarketCap shows Ethereum’s price at $3,566.59, with a notable 90-day gain of 124.37%, despite a short-term 1.35% dip over 24 hours.

According to Coincu research, the Ordinance is poised to set a global standard for stablecoin regulation, aligning Hong Kong with comprehensive global efforts. Observing regulatory trends, niche sectors of the fiat-backed stablecoin market may be impacted, with stringent AML/CTF requirements and compliance measures likely shaping the landscape for involved digital asset entities.