HK PRL, HK Treasury said Stablecoins bill was gazetted, to provide for supervision of activities involving stablecoins, and give HKMA investigatory and enforcement powers.
Stablecoins Bill
Bill is expected to enhance regulatory framework for virtual asset (VA) activities, by addressing potential financial stability risks posed by fiat-referenced stablecoins (FRS).
Any person issuing FRS in HK in the course of business, issuing FRS that purport to maintain a stable value with reference to HKD in the course of business, or actively marketing the person's issue of FRS to the public of HK, must be licensed by HKMA.
Bill also seeks to provide HKMA with necessary supervision, investigation, enforcement powers for the regime’s effective implementation; first reading will be Dec. 18, 2024.
May 2025 Bill Passed
On May 21, 2025, HK Treasury welcomed passage of the Stablecoins bill by HK PRL.
Upon implementation of the Stablecoins ordinance, any person who issues an FRS in Hong Kong, or issues an FRS that purports to maintain a stable value with reference to Hong Kong dollar in or outside Hong Kong, will need to obtain a license from HKMA.
HKMA said the ordinance is expected to come into effect in 2025, to allow sufficient time for the industry to understand the requirements under the licensing regime.
The regime provides for transitional arrangement to facilitate applications for licenses.
It will conduct further consultations on detailed regulatory requirements in due course.
May 2025 Ordinance Gazetted
On May 30, 2025, HK PRL said the Stablecoins ordinance has been gazetted, and will be coming into operation on a day to be appointed by notice published in the gazette.
Also reminded that HKMA has launched a consultation on the detailed regulatory requirements of the regime, including provisions related to AML/CFT, see #256117.
Jun. 23, 2025 HKMA Comments
On Jun. 23, 2025, HKMA Chief Executive Eddie Yue commented on robust, sustainable development of stablecoins following above passage of the Stablecoins ordinance.
HKMA is currently conducting industry consultation on detailed implementation guides for early adoption; actively participating in FSB work under G-20, coordinating review of Global regulatory framework for crypto-asset activities implementation globally.
HKMA expects to set high bar for licensing considering novelty and potential risks of stablecoins, need for user protection, market capacity, and long-term development.
Envisaged that only handful of licenses will be granted initially; in addition, noted licensed stablecoin issuers must demonstrate viable use cases and ability to operate in a prudent and sustainable manner while commanding trust of market participants.
Stablecoin issuers must further demonstrate that they have adequate capabilities and experience across multiple areas including management and security of reserve assets, effective price stabilization mechanisms, comprehensive redemption policies.
Required capabilities include technological security, risk management, and AML.
For cross-border activities, applicants are expected to develop compliance plan, show financial strength, ensure regulatory approvals in Hong Kong and relevant jurisdictions.
Applicants must have robust business plan and necessary technical and financial resources to sustain operations; must articulate how scheme would address pain points in economic and financial activities with clear plan to maintain large user base.
HKMA will adopt a cautious approach in considering license applications per standards.
Jul. 2023 HKMA Upcoming Guidance
On Jul. 23, 2025, HKMA Chief Executive Eddie Yue expounded on HKMA's regulatory perspectives and elaborated on the next steps for implementing Stablecoins ordinance.
Institutions have shown intention to apply for stablecoin issuer licenses; however, some of the proposals have no viable, concrete plans, or implementation roadmaps.
In the initial stage, HKMA will at most grant a handful of stablecoin issuer licenses.
HKMA has consulted the market on two implementation guidelines on supervision and anti-money laundering (#256117), which will be published by the end of Jul. 2025.
It will release the explanatory note on licensing of stablecoin issuers soon, which will outline the HKMA’s arrangements for accepting and processing license applications.
Aug. 2025 HK GVT Gazetted Ordinance
On Aug. 5, 2025, HK GVT gazetted Stablecoins ordinance Cap. 656 on e-legislation.
The published ordinance is effective from Aug. 1, 2025.
In Aug. 2025, HKMA, HK SFC spoke on stablecoin-related volatility, see #265695.
Regulators
HK GVT; HK PRL; HK Treasury; HKMA
Entity Types
Corp
Reference
OG Cap. 656, 8/5/2025; Bl 7/23/2025; PR 6/23/2025; OG L.N. 125 of 2025, 6/6/2025; OG Ord. No. 17 of 2025, 5/30/2025; PR 5/21/2025; Bill, 12/6/2024; ESG;
