On May 21, 2025, Hong Kong’s Legislative Council passed the Stablecoins Bill, establishing a licensing regime for fiat-referenced stablecoin (FRS) issuers. The new law requires any entity issuing an FRS in or related to Hong Kong to obtain a license from the Monetary Authority (MA). Licensed issuers must meet stringent requirements, including proper reserve asset management, client asset segregation, redemption at par value, anti-money laundering (AML) and counter-terrorist financing (CTF) compliance, risk management, disclosures, and auditing.
Only licensed institutions may offer FRSs to retail investors, and only advertisements for licensed FRSs are permitted—even during a six-month transitional period. The regime follows a risk-based, activity-aligned approach, aiming to enhance investor protection, prevent fraud, and promote the sustainable development of Hong Kong’s digital asset market.
The government and the MA emphasized that this regulation aligns with international standards and strengthens Hong Kong’s position as a global financial hub. The ordinance is set to come into effect later in 2025, with transitional arrangements to help the industry adapt. Further consultations will soon be held on over-the-counter and custodian virtual asset services.
https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/05/20250521-3