The HK Stablecoin Bill also sets out requirements in areas such as reserve asset management, redemption, and risk management.
Hong Kong passed a new bill establishing a licensing framework for fiat-referenced stablecoin issuers, marking a significant step in regulating its growing digital asset sector. Under the new law, anyone issuing stablecoins in Hong Kong — or issuing coins backed by the Hong Kong dollar, regardless of where they operate — must obtain a licence from the Hong Kong Monetary Authority (HKMA).
The legislation sets out clear requirements around reserve asset management, redemption mechanisms, and risk controls to ensure public and investor protection. It forms part of Hong Kong’s broader strategy to position itself as a competitive global hub for digital assets.
Stablecoins, which are cryptocurrencies typically pegged to fiat currencies like the US dollar, play a crucial role in enabling efficient trading within the crypto ecosystem. Christopher Hui, Secretary for Financial Services and the Treasury, said the bill follows a “same activity, same risks, same regulation” principle, aiming to build a robust and risk-based regulatory environment.
Chainalysis’s Head of Policy for APAC, Chengyi Ong, commented: “Stablecoins form the backbone of the digital asset ecosystem, accounting for the majority of value transferred. This is one reason why the passage of Hong Kong’s Stablecoins Bill marks a major step forward for the jurisdiction.”
“Regulated HKD stablecoins will boost retail crypto trading, but their broader potential is in transforming real-world payments and settlement. In this regard, having legislation in place could give Hong Kong an edge over Singapore in the stablecoin race. Despite this progress, though, we’re not at the end of the journey as the market is awaiting more detailed rules from the HKMA.”
The HKMA’s stablecoin sandbox has already attracted three participants, and the new law is expected to come into effect later this year. The move strengthens Hong Kong’s digital finance infrastructure and signals further momentum in its push for virtual asset leadership.
