Hong Kong Monetary Authority Implements Stablecoin Licensing Framework

Hong Kong has taken a decisive step toward regulating stablecoins with the Hong Kong Monetary Authority (HKMA) unveiling a comprehensive licensing framework on July 29, 2025. The new rules, effective August 1, 2025, mandate that all stablecoin issuers—whether local or international—must obtain a license to operate in the region. The regulations cover fiat-backed tokens pegged to currencies like the Hong Kong dollar (HKD) and US dollar (USD).

The HKMA released four key documents outlining the requirements: a licensing guide, anti-money laundering (AML) compliance guidelines, application procedures, and a transition framework for existing operators. No licenses have been issued yet, and the authority warned that any claims to the contrary are unlawful.

Issuers must maintain full reserves in cash or high-quality liquid assets, segregated from company funds, to ensure stability and consumer protection. This MOVE positions Hong Kong alongside Singapore and the EU as a leader in digital asset regulation.