Hong Kong Stablecoin Ordinance Set for August Launch
Hong Kong’s new stablecoin law takes effect on August 1, with major firms vying for limited licenses.
- Hong Kong’s stablecoin law begins August 1, 2025
- Only a few licenses will be granted by the HKMA
- Over 40 top firms are preparing to apply
Hong Kong is stepping into the spotlight of crypto regulation with the Hong Kong Stablecoin Ordinance, which officially takes effect on August 1, 2025. This new legal framework will allow stablecoin issuers to operate under a regulated regime, but with limited room—only a single-digit number of licenses will be issued.
The Hong Kong Monetary Authority (HKMA) will begin accepting license applications on the same day the ordinance goes into effect. The limited number of licenses has triggered a rush among major players, especially from mainland China. More than 40 companies—mostly top financial institutions and internet giants—are reportedly gearing up to apply.
Why So Few Licenses?
The HKMA has made it clear: stability and trust are more important than volume. By offering only a handful of licenses, regulators aim to maintain tight oversight of this sensitive part of the crypto ecosystem. Stablecoins are often used for payments, remittances, and DeFi operations, so any failure could ripple through the financial system.
This cautious approach is intended to avoid what regulators have seen in other jurisdictions—an explosion of low-quality or unbacked stablecoins. Hong Kong wants to be a hub of innovation, but not at the cost of financial stability.
Who’s in the Race?
Though names haven’t been officially released, insiders suggest that applicants include some of China’s largest fintech, internet, and banking firms. These players are drawn by Hong Kong’s reputation as a global finance center and its bridging role between East and West.
With just a few licenses up for grabs, the competition is intense. The successful candidates will likely shape the future of stablecoin usage not just in Hong Kong, but across Asia.
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