3 min read
Jun 24, 2025
Hong Kong to Begin Issuing Stablecoin Licences
TL;DR
Hong Kong plans to issue stablecoin licences soon, following the recent passage of its Stablecoins Bill.
Regulators will begin with fiat-backed tokens and may expand to other asset-linked stablecoins.
The move aligns with global efforts, as the U.S. and EU also advance stablecoin regulations.
Hong Kong Financial Secretary Paul Chan Mo-po told China Daily in a recent interview that regulators had received a “number of applications” from entities seeking to become qualified stablecoin issuers in the city. He confirmed that they plan to start issuing licences in the next few months.
A Step-by-Step Approach
Hong Kong has long positioned itself at the forefront of digital asset regulation. This announcement comes just weeks after the Legislative Council passed Hong Kong’s Stablecoins Bill in late May. Under the new legislation, any individual or entity issuing fiat-backed stablecoins in Hong Kong must first secure a licence from the Hong Kong Monetary Authority (HKMA).
Chan noted that regulators intend to take a step-by-step approach—starting by establishing a sound regulatory foundation focused on fiat-pegged tokens, and potentially expanding to other asset-linked stablecoins that are “real and integrated with the real economy.”
“The stablecoin, particularly when it is referenced to fiat currencies, (has) many user case scenarios,” he stated.
Stablecoin Regulation Around the World
Hong Kong is not alone in moving forward with stablecoin regulation. Jurisdictions around the world are racing to establish frameworks that support innovation while managing risk—particularly as stablecoins emerge as key tools in improving cross-border payments.
In the United States, the Senate recently passed the GENIUS Act, which establishes the country’s first federal framework for stablecoin issuance. The bill outlines strict reserve requirements, prohibits yield-bearing tokens, and excludes qualified stablecoins from being treated as securities. It now awaits consideration in the House of Representatives.
Across the Atlantic, the European Union is also advancing regulation through the Markets in Crypto-Assets Regulation (MiCAR). Introduced in 2023, MiCAR is now being rolled out in phases, with full implementation expected by 2026. Among other things, it imposes reserve, governance, and transparency requirements on stablecoin issuers operating within the EU.
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