Hong Kong Tightens Stablecoin Oversight with New Licensing and AML Framework

Hong Kong's monetary authority has unveiled stringent licensing requirements for stablecoin issuers, marking a decisive step toward regulatory clarity in the digital asset sector. The HKMA's dual guidelines—covering both supervisory expectations and anti-money laundering protocols—will take effect August 2025, creating a structured pathway for fiat-backed stablecoin operations.

The framework mandates rigorous reserve backing, redemption guarantees, and transaction monitoring systems. Issuers must implement real-time liquidity surveillance and conduct thorough customer due diligence, aligning with global standards set by the EU's MiCA and recent U.S. legislation. This regulatory push reflects Hong Kong's strategy to position itself as a compliant hub for digital finance innovation.