Hong Kong stablecoin regulation

Key Points:* Hong Kong enacts stablecoin law, targeting fiat-backed stability.

• Stablecoins must have full reserve backing.
• No immediate stablecoin issuer approved under new law. On August 1, 2025, the Hong Kong Legislative Council enacted the Stablecoin Regulation, mandating 100% fiat backing, emphasizing international payments, and aligning with global standards.

Hong Kong’s regulation attracts stablecoin issuers and ensures consumer protection, discouraging speculation, with potential market shifts echoing European and Singaporean precedents.

Hong Kong Mandates Full Reserve for Stablecoins

Chiu Tat-kan, a Legislative Council member, underscores the move as a step to ensure financial stability and transparency without engaging in market competition. Further, major stablecoin issuers are expected to comply before seeking approvals for operations in Hong Kong, but as of now, no issuer is publicly licensed under the new regime.

Community responses to the ordinance mainly highlight its alignment with international standards. Legislator Chiu Tat-kan reiterated the focus on seamless international transactions. The local market has demonstrated cautious optimism, awaiting potential issuer announcements. The Hong Kong Monetary Authority has insisted on strict compliance and periodic consultation for ongoing administration and regulatory updates.

“The core feature of fiat-backed stablecoins is 100% backing by highly liquid monetary assets as reserves. The main function…remains international payments, with no opportunity for speculation whatsoever.” — Chiu Tat-kan, Legislative Council Member, Hong Kong.

Global Stablecoin Framework Influences and Market Trends

Did you know? Hong Kong’s regulation is inspired by the EU’s MiCA, which saw a growth in EUR-backed stablecoins following its enactment, signaling potential impacts on global stablecoin adoption.

As of August 4, 2025, CoinMarketCap reported Tether (USDT) holds a price of $1.00 with a market cap of $163.92 billion. The 24-hour trading volume reached $68.83 billion, experiencing a dip of -26.53%. In the past 90 days, USDT saw a price increase of 3.67%.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 03:29 UTC on August 4, 2025. Source: CoinMarketCap Hong Kong’s stablecoin law may influence the Asia-Pacific region’s regulatory strategies. According to Coincu’s research team, emerging stablecoin frameworks inspire confidence in risk management and consumer protection across digital finance sectors. The ordinance could trigger strategic shifts in how stablecoin issuers approach compliance for expanding international operations.

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