Hong Kong Launches Stablecoin Licensing Regime Amid Global Regulatory Shifts

Hong Kong's stablecoin licensing framework took effect on August 1, mandating that issuers of fiat-referenced stablecoins secure approval from the Hong Kong Monetary Authority (HKMA). The MOVE positions the city as a potential global hub for digital assets, with stringent requirements covering reserve management, redemption guarantees, and anti-money laundering protocols.

The regulatory push follows the U.S. passage of the GENIUS Act, drawing comparisons between the two jurisdictions' approaches. While adoption in local retail markets may lag, firms are eyeing international and business-to-business applications, signaling a strategic pivot in Hong Kong's crypto ambitions.

This development is part of a broader overhaul of Hong Kong's digital asset policies, which includes licensing frameworks for exchanges and new rules on VIRTUAL assets. The city aims to reinforce its role as a financial gateway between China and global markets.