Hong Kong has passed the Stablecoin Bill, allowing licensed fiat-backed stablecoin issuers to operate by the end of 2025. The new rules aim to boost Hong Kong’s digital asset hub role while ensuring a secure and clear framework for stablecoin issuance.
Key Elements of Hong Kong’s New Stablecoin Bill
Hong Kong’s Stablecoin Bill was passed today, May 21, 2025. It requires anyone issuing fiat-backed stablecoins in Hong Kong or to its residents to obtain a license from the HKMA. This rule applies if the stablecoin is pegged wholly or partially to the Hong Kong dollar. It also applies if the issuer is based in Hong Kong.
Moreover, the license ensures issuers meet strict reserve asset management and redemption rules. Issuers must keep client assets separate and have clear plans for managing risks. However, the Stablecoin bill excludes central bank digital currencies and tokens regulated under other laws. It focuses on privately issued stablecoins, pegged to official currencies.
Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, stressed the “same activity, same risks, same regulation” principle. He said the bill aims to protect users and foster a strong, risk-based regulatory framework.
Eddie Yue, HKMA’s CEO, said licensing will support healthy growth in Hong Kong’s digital asset space. It will also help integrate stablecoins safely into the financial system.
The bill aligns with global standards set by the Financial Stability Board. These standards call for stablecoin regulation to reduce financial risks. This shows Hong Kong’s commitment to balancing innovation with stability.
Industry Impact and Sandbox Initiatives
The HKMA had launched a stablecoin sandbox earlier this year. It invites firms to test stablecoin models under supervision. Participants include Standard Chartered Hong Kong, Hong Kong Telecom (HKT), Animoca Brands, JD.com’s Coinlink Technology, and RD Innotech. ZA Bank welcomed the bill and is preparing to provide reserve banking services for stablecoins.
Johnny Ng, a lawmaker involved in the bill, shared on X that passing this legislation marks only the beginning of building web3 infrastructure in Hong Kong. The sandbox and licensing regime aim to attract innovation and ensure consumer protection.
This new law sets a clear path for stablecoin issuers, signalling Hong Kong’s serious push into regulated digital finance.
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