General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
The Stablecoins Ordinance (Cap. 656) was passed by the Hong Kong Legislative Council on 21 May 2025 and entered into force on 1 August 2025, making Hong Kong one of the first jurisdictions in Asia to implement a dedicated stablecoin licensing regime. The Ordinance is administered by the HKMA and requires any person carrying on a 'regulated stablecoin activity' — including issuing fiat-referenced stablecoins in Hong Kong, issuing HKD-referenced stablecoins outside Hong Kong, or marketing specified stablecoins — to obtain an HKMA licence. The HKMA published accompanying guidelines on supervision of licensed stablecoin issuers and dedicated AML/CFT guidance simultaneously with the Ordinance coming into force.
Applies to: (1) Issuers of fiat-referenced stablecoins in Hong Kong (regardless of the reference currency). (2) Issuers of HKD-referenced stablecoins from outside Hong Kong. (3) Persons offering or marketing specified stablecoins in Hong Kong. HKMA-licensed stablecoin issuers conducting regulated stablecoin activity are exempt from the SFC's VATP regime for those same activities. First stablecoin licences expected to be issued in early 2026.
Key requirements: (1) HKMA licence required. (2) Minimum paid-up share capital of HKD 25 million. (3) Full reserve backing with high-quality, liquid assets, segregated from issuer operational funds in bankruptcy-remote accounts. (4) Redemption rights: holders must be able to redeem at par value. (5) AML/CFT: full KYC, customer due diligence, Travel Rule compliance, suspicious activity monitoring and reporting — per HKMA AML/CFT Guideline for Licensed Stablecoin Issuers. (6) Governance and transparency: internal controls, cybersecurity readiness, transparent disclosure of licensing status. (7) Fit-and-proper test for directors and key officers. (8) Minimum two executive officers approved by HKMA.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.