Hong Kong’s Stablecoin Regulatory Framework Sets Stage for Digital Finance Leadership

Hong Kong has cemented its position as a strategic hub for compliant digital finance with the enactment of its stablecoin regulatory framework. The new regime replaces the previous "white list and sandbox" model with a comprehensive licensing system overseen by the Hong Kong Monetary Authority (HKMA). Issuers must now demonstrate 100% liquid asset backing, maintain HK$25 million in minimum paid-up capital, and establish local corporate presence.

The MOVE comes as the U.S. GENIUS Act legitimizes dollar-backed stablecoins, reinforcing global dollar hegemony through Treasury reserves—Tether alone holds nearly $100 billion in U.S. Treasury bills. Hong Kong's proactive legislation offers a counterbalance, leveraging its offshore yuan market capabilities to create unique positioning opportunities amid growing geopolitical tensions over digital currency control.