

Hong Kong <Stablecoin Ordinance> will come into effect on August 1, and the issuing channel will be opened
Aug 01, 2025 pm 07:24 PMThe Hong Kong Stablecoin Ordinance came into effect on August 1, 2024, clearly requiring stablecoin issuers to operate with licenses. 1. The issuer must have a paid-in capital of up to HK$5 million; 2. The reserve assets must be 100% backed by high-quality current assets and subject to monthly audits; 3. Customer funds must be isolated from their own assets; 4. Regular disclosure of reserve composition and audit results; unlicensed persons can be fined up to HK$5 million and imprisoned for 7 years. Existing institutions must apply for transition before the end of February 2025. This move is intended to prevent financial risks and promote compliance innovation, consolidate Hong Kong's position as an international financial center and attract global Web3.0 capital layout.
Hong Kong's Stablecoin Ordinance came into effect on August 1: The licensing system opens a new era of encrypted supervision
On August 1, 2024, the Hong Kong "Stable Coin Issuers Ordinance" (hereinafter referred to as the "Stable Coin Ordinance") officially came into effect, marking a key step for Asian financial hubs in the field of cryptocurrency regulation. The regulations have established a licensing system to implement comprehensive supervision of fiat-linked stablecoins, aiming to balance financial innovation and risk prevention and control, and consolidate Hong Kong's position as an international financial center.
Core content: Mandatory licensing and reserve fund requirements
According to the new regulations, all fiat stablecoin issuers (such as USDT, USDC, etc.) that operate in Hong Kong or provide services to Hong Kong investors must apply for a license from the Hong Kong Monetary Authority (HKA). Applicants must meet strict qualification requirements, including:
Capital adequacy: minimum paid-in capital of HK$5 million or equivalent foreign currency;
Reserve Asset Management: The issuance scale is 100% supported by high-quality current assets (such as cash, treasury bonds) and must be verified by an independent auditing agency every month;
Risk isolation: The customer reserve funds are strictly separated from the issuer's own assets to prevent the risk of misappropriation;
Disclosure obligation: Regularly disclose reserve composition and audit results to ensure transparency.
Unlicensed issuance or promotion of stablecoins will constitute a criminal offence, with a maximum fine of HK$5 million and a 7-year imprisonment. The transition period is until the end of February 2025, and existing issuers must submit applications within the period.
Regulatory intention: Prevent risks and embrace innovation
HKMA President Yu Weiwen emphasized that the new regulations aim to solve the potential runs, pre-washing and systemic risks of stablecoins, while providing a clear development framework for compliant companies. The regulations specifically target stablecoins pegged to the Hong Kong dollar to maintain the stability of the local monetary system.
Market impact: Industry accelerates compliance
The first batch of license applications are expected to come from traditional financial institutions and compliant crypto companies. Zodia Custody, a subsidiary of Standard Chartered Bank, and ZhongAn Bank, local virtual bank, have both expressed their intention to apply for licenses. Analysis pointed out that the new regulations may prompt some stablecoins to exit the Hong Kong market, but will strengthen investor confidence in the long run.
Hong Kong's move is synchronized with global trends, and the United States and the European Union have successively launched stablecoin regulatory frameworks. As the first special legislation for stablecoins, Hong Kong's Stablecoin Ordinance may become an Asian regulatory template, further attracting international capital to layout the Web3.0 ecosystem. In the future, the HKMA will also conduct consultations on new types such as algorithmic stablecoins and continue to improve the regulatory system.
The above is the detailed content of Hong Kong <Stablecoin Ordinance> will come into effect on August 1, and the issuing channel will be opened. For more information, please follow other related articles on the PHP Chinese website!

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