- Hong Kong to issue stablecoin licenses starting August 1, 2025 officially.
- Paul Chan says fiat-backed regulation ensures trust, security, and innovation growth.
- Hong Kong aims to lead global crypto with DeFi regulation roadmap.
Hong Kong is moving forward with regulating the stablecoin sector. Financial Secretary Paul Chan Mo-po recently shared that regulators have received many applications from companies seeking licenses to issue stablecoins in the city. The initial licenses will be awarded within the next few months.
Major Firms Eye Stablecoin Licenses as Hong Kong Prepares for Rollout
Chan, in an interview which appeared in China Daily on June 20, clarified that the government is taking steps gradually, one at a time. This involves creation of a high legal framework and concentrating on the fiat-backed stablecoins initially. He clarified that there are numerous applications of fiat-pegged stablecoins within the financial system.
Notably, Hong Kong becomes one of the first territories of the world to start developing tangible measures toward the regulation of digital currencies. This is only the beginning of the creation of the fiat-backed stablecoins. The city may also approve stablecoins backed by real-world assets. Moreover, these assets could help boost overall economic growth.
It is another announcement coming after the Legislative Council of the Hong Kong passed the Stablecoins Bill in late May. This new law is the Stablecoins Ordinance and is scheduled to come into operation on August 1, 2025. It will require it to be obligatory that whoever issues fiat-backed stablecoins in Hong Kong, or stablecoins supposedly pegged to the Hong Kong dollar (regardless of geographical scope of issuance), must receive such a license issued by the Hong Kong Monetary Authority (HKMA).
Some of the key corporations have already expressed interest. These incorporate technological companies such as JD.com and the Ant Group, monetary establishments such as Standard Charters and even conveyance suppliers. There are some of these companies which have indicated their plans to introduce their own stablecoins by the end of the year.
Furthermore, a Group of seven companies could be seen testing their stablecoin system within the sandbox regime of the HKMA since July last year. By doing this, they will experiment under a controlled environment as they gear towards total compliance with the new law.
Paul Chan Confirms Stablecoin Regulations Begin August 1, 2025
Chan highlighted that regulation is the first step to ensuring that the stablecoin industry grows in a responsible and sustainable way. This strategy is a perfect balance between innovation and financial security and popular trust.
At the second step following fiat-backed tokens, Hong Kong can consider such other asset-based stablecoins. These may consist of commodities or other financial products which are in the real economy. The aim is to make sure that cryptocurrencies do not become useless, but based on economic value.
In one of the recent forums, Paul Chan regrettably confirmed the implementation of regulations on stablecoins, which will begin in August 1, 2025. He continued that this is in the larger plan of the Hong Kong aiming to build its digital finance sector. Already, the city has licensed 10 trading platforms with another 8 awaiting investigations.
The clarity of regulations by Hong Kong has been embraced by the industry leaders. Most people consider that it will invite greater participation of institutions and transform the region into a crypto innovation hotspot. All stablecoin issuers must maintain strong reserves and undergo independent audits. Additionally, they are required to operate with full transparency.
By doing so, Hong Kong is establishing itself as a global leader in digital asset regulation and this should precondition its future expansion in both stablecoin and decentralized finance (DeFi) markets.
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