The Hong Kong government has recently published a notice to enforce strict regulations for stablecoins, effective from August 1, 2025.
Once implemented, the Stablecoins Ordinance would add regulatory oversight to all stablecoins backed by fiat currencies. Hong Kong aims to become a leader in digital currency regulation with this move.
While the Stablecoins Ordinance could enhance investor protection and foster positive growth in the digital currency sector, it will impact the global stablecoin markets.
Hong Kong To Enact Stablecoins Ordinance In August 2025
On Friday, June 6, 2025, a notice was published in the Gazette revealing that Hong Kong has appointed Friday, August 1, 2025, as the effective date to enforce its stringent Stablecoins Ordinance (Cap. 656). The bill was passed on Wednesday, May 21, 2025.
The essence of the Stablecoins Ordinance is to oversee all stablecoins activities, which involves introducing licensing and supervising all fiat-referenced stablecoins (FRS) in Hong Kong.
According to Yu Weiwen, President of the Hong Kong Monetary Authority, high entry barriers, such as those associated with electronic wallets and banks, necessitated this move. In the notice, Weiwen said,
“Hong Kong has established relatively strict standards for stablecoin issuers, with high entry barriers that are almost on par with the regulations for electronic wallets and banks. Only a few licenses will be issued in the first phase, and licensed stablecoins will have specific uses, such as for cross-border trade.”
The stablecoins regulations enforce stringent standards similar to those for banks and electronic wallets on stablecoin issuers within the country.
To ensure legal compliance and market stability, the requirements for anti-money laundering (AML), redemption, and reserve asset management (RAM) are aligned with match banking industry standards.
Following the notice, there have been positive institutional responses, including interest from Ant Group, JD.com, and other top Chinese tech firms seeking to secure their licenses.
Last year, the Hong Kong Monetary Authority (HKMA), the country’s central banking institution, launched a sandbox for stablecoin issuers with participants including RD InnoTech, Jingdong Coinlink, Hong Kong Telecommunications, Animoca Brands, and Standard Chartered Bank.
First Global Stablecoin Legislation
If successfully implemented, the Hong Kong Stablecoins Ordinance would be the first global dedicated regulation for FRS and may influence other countries, such as China, to establish a similar regulatory model.
While Hong Kong has been at the forefront to develop stablecoin regulations, it is not the only country pushing for stablecoins regulation. The US is also into the race.
Last week Tuesday, the US Senate passed the “GENIUS Act.” The GENIUS Act is a landmark stablecoin bill that set in place necessary guidelines for USD-pegged stablecoins. The act also establishes a regulatory pathway for private firms to issue USD-pegged stablecoins.
The bill, which was passed with a 68-30 vote, is expected to head to the House soon for further consideration.
Offshore Yuan-pegged Stablecoins On The Way
Jianguang Shen, the VP for JD.com mentioned that the stablecoin legislation could lead to the development of offshore yuan-pegged stablecoins.
He added that if this becomes possible, it would help position yuan in the “next generation of international currency competition.”
According to a local media, popular Hong Kong lawmaker, Lo Wai-kwok, also urged the Hong Kong authorities to promote the development of offshore yuan-pegged stablecoins.
