Hong Kong to Regulate Stablecoins with Strict Licensing and 25M HKD Minimum Capital Requirement

Hong Kong has moved to regulate stablecoins under a new framework that will take effect on August 1, 2025. The Hong Kong Monetary Authority (HKMA) has mandated that any firm issuing fiat-backed stablecoins must obtain a license under a strict regime, including a minimum capital requirement of HKD 25 million or its equivalent [1]. The licensing process emphasizes transparency, full fiat reserves, and anti-money laundering (AML) compliance [2]. The HKMA has signaled that only a limited number of licenses will be issued initially, maintaining a “high bar” for approval [3].

The new regulations are part of Hong Kong’s broader digital asset strategy, which includes initiatives like the LEAP framework, aiming to position the city as a global fintech and digital asset hub [4]. Around 50 firms, including those backed by prominent figures such as Jack Ma and JD.com’s international unit, have expressed interest in applying for licenses [5]. RD InnoTech, supported by former HKMA official Norman Chan, is preparing to launch a stablecoin pegged to the Hong Kong dollar to facilitate cross-border B2B payments and potentially tokenize offshore Renminbi [6].

A six-month transitional period is in place for existing stablecoin issuers to comply with the new rules. Applications must be submitted by September 30, 2025, with non-compliant firms facing potential shutdown by January 2026 [7]. During this period, the HKMA may issue temporary licenses to firms with a clear compliance pathway [8]. The HKDR stablecoin, fully backed by the Hong Kong dollar, is expected to play a key role in enhancing cross-border payments, investment, and remittance services [9]. RD Technologies, a key player in the digital asset space, has secured $40 million in Series A2 funding to accelerate infrastructure development and has partnered with ZA Bank to integrate HKDR into the financial ecosystem [10].

The HKMA has not yet issued any licenses and has warned against hype and fraudulent activity in the stablecoin space [11]. Eddie Yue, Chief Executive of the HKMA, emphasized that market participants should exercise caution in public communications and avoid making unrealistic expectations [12]. The regulatory approach is seen as similar to the EU’s MiCA framework and reflects global trends of increasing oversight and institutional concentration [13]. While the rules may favor large financial institutions, smaller crypto startups are likely to face increased compliance costs and operational challenges [14].

The introduction of the stablecoin regime is expected to attract global investors and fintech firms, reinforcing Hong Kong’s ambition to become a leading center for digital assets [15].

Source:

[1] title1 (https://www.weforum.org/stories/2025/07/stablecoin-regulation-genius-act/)

[2] title2 (https://www.mexc.com/news/interpretation-of-hong-kong-stablecoin-application-guidelines-the-first-batch-of-licenses-are-expected-to-be-issued-early-next-year/62913)

[3] title3 (https://www.coinex.com/en/insight/report/stablecoin-regulation-market-2025-6888a15ee1d07c946ffbd921)

[4] title4 (https://www.panewslab.com/en/articles/fcbne5qs)

[5] title5 (https://www.onesafe.io/blog/hong-kong-stablecoin-hkdr-innovation)

[6] title6 (https://financefeeds.com/rd-technologies-raises-40m-in-series-a2/)

[7] title7 (https://www.bitcoinist.com/hong-kong-no-stablecoin-licences-yet-arrive-2026/)

[8] title8 (https://www.cryptopolitan.com/hong-kong-launches-stablecoin-regime/)

[9] title9 (https://www.radom.com/insights/hong-kong-establishes-regulatory-framework-for-stablecoins-introduces-public-registry)

[10] title10 (https://www.ccn.com/education/crypto/hong-kong-crypto-regulations-vasp-stablecoin-licensing-explained/)

[11] title11 (https://www.ainvest.com/news/hong-kong-imposes-strict-stablecoin-rules-boost-digital-asset-hub-2507/)

[12] title12 (https://www.fastbull.com/news-detail/hong-kong-implements-new-stablecoin-regulations-from-august-4337491_0)

[13] title13 (https://wublock.substack.com/p/offshore-rmb-stablecoin-on-the-horizon)

[14] title14 (https://www.jdsupra.com/legalnews/the-payments-newsletter-including-1351633/)

[15] title15 (https://www.cointelegraph.com/news/hong-kong-stablecoin-guidelines-no-licenses-issued)