In-depth Interpretation of Hong Kong's Stablecoin Regulations: Regulatory Framework and Industry Impact

In May 2025, Hong Kong completed the legislative process for the "Stablecoin Ordinance" and announced that it will officially come into effect on August 1. This event has attracted widespread attention both inside and outside the industry. This article will provide a detailed overview of this new "Ordinance" and explore its impact on the industry.

1. Interpretation of Regulatory Framework

1. Regulated subjects

The "Regulations" limit the regulatory subjects to "designated stablecoins", which are stablecoins pegged to fiat currencies that maintain stable value entirely based on official currencies or units of account specified by the Monetary Authority. The Hong Kong government has chosen to focus its regulation on the payment functionality, categorizing stablecoins as "payment tools".

2. Restricted Activity Range

Regulated stablecoin activities include:

• Issuance of specified stablecoin in Hong Kong
• Issue designated stablecoins pegged to the Hong Kong dollar outside of Hong Kong
• Other activities designated by the financial management officer
• Actively promote the above activities

In addition, the Regulations also stipulate restrictions on stablecoin offers, advertisements, fraudulent activities, and more.

3. License application conditions

To apply for a stablecoin license, the following main conditions must be met:

• Financial requirements: no less than 25 million HKD in capital or equivalent assets
• Reserve Asset Management: Asset Isolation, Full Coverage, High Liquidity
• Establish redemption mechanism
• Management qualifications requirements
• Risk Management and Audit System
• Information disclosure requirements, etc.

4. Compliance Obligations of Licensees

After obtaining the license, the licensee must fulfill the following main obligations:

• Pay annual fee
• Public Display License Number
• Continuously meet the minimum standards
• Obligation to Report Changes, etc.

5. Regulatory Authority

The financial management officer has extensive regulatory powers, including license approval, daily supervision, and investigation and evidence collection.

2. The Significance of the Regulations

1. Policy Level: Established Hong Kong's "digital currency issuance rights" in the era of digital currency.

2. Web3 World: Provides opportunities for the compliant and scalable development of stablecoins.

3. Renminbi stablecoin: Provides policy reference for future exploration

3. Conclusion

The implementation of the "Regulations" marks a key step for Hong Kong in the global stablecoin regulatory race. This is not only an innovation in local financial policy but also brings new opportunities and challenges to the entire Web3 ecosystem. Hong Kong has provided a clear roadmap for the legalization, systematization, and industrialization of stablecoins, which is worthy of close attention from the industry.