Hong Kong Monetary Authority: will continue to maintain monetary and financial stability

Hong Kong Monetary Authority: will continue to maintain monetary and financial stability

The Hong Kong Monetary Authority (HKMA) has reiterated its commitment to maintaining monetary and financial stability, as reflected in recent developments and regulatory initiatives. The HKMA, under the leadership of Chief Executive Eddie Yue, has been proactive in addressing various financial challenges and fostering a robust financial ecosystem.

One of the key regulatory measures is the introduction of a mandatory reference checking scheme aimed at mitigating the risk of misconduct in the banking industry. This scheme, which has been in operation since May 2023, covers approximately 3,500 senior staff of banks and has successfully conducted around 700 reference checks, with only nine cases involving negative information. The scheme is set to expand to cover around 50,000 staff members by September 30, 2025, including those involved in securities, insurance, and Mandatory Provident Fund regulated activities [3].

Additionally, the HKMA has moved to regulate stablecoins under a new framework that will take effect on August 1, 2025. The new regulations require any firm issuing fiat-backed stablecoins to obtain a license under a strict regime, including a minimum capital requirement of HKD 25 million. The HKMA has emphasized transparency, full fiat reserves, and anti-money laundering (AML) compliance in the licensing process. This regulatory approach is part of Hong Kong's broader digital asset strategy, which aims to position the city as a global fintech and digital asset hub [2].

The HKMA's regulatory initiatives are designed to enhance the integrity and stability of the financial system. By implementing measures such as the mandatory reference checking scheme and strict stablecoin regulations, the HKMA seeks to protect both the financial industry and its customers from potential misconduct and fraudulent activities. These efforts are crucial in maintaining public trust in the banking system and reinforcing Hong Kong's position as a leading global financial center.

References:
[1] https://www.hkma.gov.hk/eng/
[2] https://www.ainvest.com/news/hong-kong-regulate-stablecoins-strict-licensing-25m-hkd-minimum-capital-requirement-2507/
[3] https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250724/