The Hong Kong Monetary Authority (HKMA) has announced the implementation of a regulatory regime for stablecoin issuers, effective August 1, 2025. This framework establishes licensing requirements for entities issuing fiat-referenced stablecoins (FRS) in Hong Kong or those pegged to the Hong Kong dollar, aiming to enhance financial stability and investor protection.
Under the new regulations, any organization engaged in issuing FRS within Hong Kong or issuing FRS referencing the Hong Kong dollar outside the region must obtain a license from the HKMA. The licensing process is designed to ensure that issuers meet stringent criteria, including reserve asset management, redemption procedures, and risk controls, to safeguard public and investor interests.
As of July 29, 2025, the HKMA has not issued any licenses. Interested parties are encouraged to submit their applications by August 31, 2025, to receive feedback from the HKMA. The initial batch of licenses is expected to be granted early next year, with a limited number of licenses to be issued in the first phase. This cautious approach reflects the HKMA's commitment to maintaining a secure and transparent environment for digital asset adoption.
Major financial institutions, including Ant Group, have expressed intentions to apply for stablecoin issuer licenses in Hong Kong. Ant Group plans to apply for the license through its international arm, Ant International, once the application process opens. This move aligns with Hong Kong's ambition to become a global digital asset hub and underscores the growing interest in the region's stablecoin market.
The HKMA has emphasized the importance of responsible communication from market participants to avoid creating unrealistic expectations. It is an offense under the Stablecoins Ordinance to falsely claim oneself as a licensee or an applicant. The HKMA has also reminded the public to remain vigilant against unlicensed stablecoin offerings, as holding unlicensed stablecoins is at the holder's own risk.
For more detailed information, refer to the HKMA's official press release on the implementation of the regulatory regime for stablecoin issuers.