Hong Kong Approves Stablecoin Bill to Regulate Crypto Issuers

Under the new ordinance, issuers must now secure a license from the Hong Kong Monetary Authority (MA). This applies to both domestic issuers and those abroad offering Hong Kong dollar-referenced stablecoins.

Strict Compliance Measures Set

Licensed issuers must meet strict standards. These include proper reserve management, client asset segregation, and guaranteed redemption at par value. Anti-money laundering protocols, auditing, transparency, and risk controls are also required.

The MA plans to consult further with industry stakeholders before finalizing technical guidelines. Officials say these rules will build market confidence and support long-term crypto innovation.

Retail Access Restricted to Licensed Issuers

Only institutions licensed under the new regime may offer stablecoins to retail investors in Hong Kong. The law also bans advertising from unlicensed issuers—even during a six-month grace period.

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Regulators urge the public to verify licensing before engaging with any stablecoin promotions.

Leaders Support Innovation with Regulation

Christopher Hui, Secretary for Financial Services and the Treasury, emphasized that the law follows global best practices. “The Ordinance upholds the ‘same activity, same risks, same regulation’ approach,” Hui said. “It reinforces user protection, fosters industry growth, and strengthens Hong Kong’s global financial leadership.”

Eddie Yue, Chief Executive of the MA, described the new regime as “pragmatic and flexible.” He said it strikes a balance between innovation and accountability, positioning Hong Kong as a trusted digital asset hub.

Transition Period and Next Steps

The new law is expected to come into force later this year, allowing firms time to adjust and apply. A transitional phase will support businesses in complying with the new requirements.

The government also announced upcoming consultations on crypto custodian services and over-the-counter (OTC) trading. A second Virtual Asset Policy Statement is expected soon, reinforcing Hong Kong’s commitment to becoming a regulated, innovation-driven Web3 economy.

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