Hong Kong Stablecoin Regulations Take Effect as Licensing Window Opens

Hong Kong's stablecoin regulations officially came into effect on August 1, 2025, marking a significant step in the region’s digital asset development. Under the new framework established by the Hong Kong Monetary Authority (HKMA), stablecoin issuers are now required to obtain licenses to operate, ensuring a structured and secure environment for fiat-backed tokens. The licensing process for the first round is currently open and will remain so until September 30, 2025. Institutions that fail to apply during this window will face a mandatory one-month wind-up period starting in November 2025 [2].

The HKMA has outlined rigorous compliance and operational standards for applicants, including a minimum paid-in capital of HK$25 million and a significant local operational presence. All licensees must use approved custodians, implement multi-signature protocols, and maintain secure private key management. Additionally, regular reserve asset audits and robust anti-money laundering (AML) controls are mandatory requirements [3].

The deputy chief executive of the HKMA emphasized that stablecoin licenses can be applied for in relation to a single fiat currency or a basket of currencies, but applicants must clearly specify the peg in their submissions. The regulatory authority has also adopted a technology-neutral approach, allowing tokenized reserves with prior written approval [3].

Industry interest in the licensing process is evident, with several major players such as JD CoinChain Technology, Standard Chartered Bank (Hong Kong), and Onchain Group expressing intent to apply. According to some estimates, approximately 50–60 institutions are actively preparing their applications, although the HKMA expects to issue only three to four licenses in the first phase [3].

This move reflects Hong Kong’s broader strategy to position itself as a global hub for digital finance. The HKMA aims to align its approach with international standards while remaining flexible to future developments. Discussions on mutual recognition with other jurisdictions are also underway, signaling an openness to cross-border collaboration [3].

As the industry adapts to the new regulatory landscape, the transition period through January 2026 provides existing issuers with time to comply with the licensing requirements. The first licenses are anticipated to be issued in early 2026, following a thorough review of applications and compliance assessments.

Source:

[1] Medium. (n.d.). Hong Kong's Stablecoin Regulations Take Effect in 2 Days … (https://medium.com/@superex/hong-kongs-stablecoin-regulations-take-effect-in-2-days-a-deep-dive-into-the-new-regulatory-612a04a357cc)

[2] CCN.com. (2025, July 30). Hong Kong Cryptocurrency Regulations 2025: Licensing … (https://www.ccn.com/education/crypto/hong-kong-crypto-regulations-vasp-stablecoin-licensing-explained/)

[3] PANews. (2025, July 30). Interpretation of Hong Kong Stablecoin Application … (https://www.panewslab.com/en/articles/mizmhki0)