Hong Kong’s New Stablecoin Ordinance to Take Effect in August

The Hong Kong Stablecoin Ordinance is set to take effect in August 2025, as announced by the Hong Kong Treasury Bureau. The Hong Kong Monetary Authority (HKMA) is finalizing market consultations and will soon release comprehensive guidelines.

This initiative is pivotal for the stablecoin sector, aligning Hong Kong with other territories like the EU on fiat-referenced token regulations. Market expectations are high for regulatory-sponsored growth and institutional adoption once the licenses are processed.

Hong Kong’s Stablecoin Licensing: What to Expect in 2025

In May 2025, Hong Kong enacted the Stablecoin Ordinance. Xu Zhengyu indicated it was designed to enhance regulation in the stablecoin sector. The HKMA aims to finalize and issue guidelines focusing on anti-money laundering and other regulatory requirements. With licenses expected to be in the single digits, there is anticipation from institutional players interested in this regulated environment.

Aiming to promote stability and growth, the ordinance will first target stablecoins pegged to fiat currencies. It stipulates that only licensed firms may engage with retail investors, a move that is expected to foster an organized market environment. This regulatory clarity encourages greater involvement from major financial institutions. Christopher Hui, Secretary for Financial Services and the Treasury, Hong Kong SAR Government, stated, “The ordinance will ensure appropriate regulation, promoting sustainable growth in the sector.”

Community reactions are cautiously optimistic, with some industry observers expecting an eventual rise in asset flows into Hong Kong’s digital sectors. Christopher Hui emphasized that this initiative was core to ensuring sustainable growth, while RMB-pegged stablecoin discussions with relevant entities remain open. The Hong Kong government gazette for 2025 provides additional insights into these regulatory developments.

Regulation Impact and Market Reactions to HK Ordinance

Did you know? Hong Kong’s approach is similar to the EU’s MiCA framework, which took effect in 2024 to regulate asset-linked tokens, reinforcing the importance of stablecoin regulation in major economies.

Tether USDt (USDT) maintains its $1.00 price, with a market cap of $158.66 billion. Trading volume soared 37.92% to $5.05 billion in 24 hours. Recent price activities saw 90-day gains of 6.06%, per CoinMarketCap data updated July 7, 2025.

The Coincu research team highlights that Hong Kong’s ordinance could significantly influence stablecoin issuance and adoption. Historical data suggests tighter regulations can consolidate market players. Analysts foresee an uptick in regulatory-compliant digital monetary products throughout this year.