Comprehensive Guide to Hong Kong’s Upcoming Stablecoin Licensing
As the world witnesses a surge in crypto-related legislation and adoption, Hong Kong is stepping up its efforts to regulate this evolving industry. The Financial Secretary of Hong Kong has announced plans to begin issuing stablecoin licenses to eligible issuers in the near future. This move is seen as a significant development in the global digital asset landscape.
Hong Kong’s Strategic Move Towards Stablecoin Regulation
In an exclusive conversation with China Daily, Hong Kong’s Financial Secretary, Paul Chan Mo-po, unveiled that the Hong Kong Monetary Authority (HKMA) will soon commence the distribution of licenses for stablecoin issuers. This initiative follows the recent enactment of a critical legislative bill designed to regulate this sector.
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On May 21, the Hong Kong Legislative Council passed the highly anticipated Stablecoins Ordinance. This legislation mandates that any individual or organization aspiring to issue a fiat-referenced stablecoin (FRS) or a Hong Kong Dollar (HKD)-pegged token within the region must secure a license from the HKMA. The law, which will take effect on August 1, is pivotal in allowing licensed entities to offer FRS in Hong Kong, granting retail investors access to tokens produced by these authorized institutions.
The ordinance is crafted to bolster regulatory oversight within the digital assets sector, promoting innovation and fostering “responsible, sustainable” growth, as stated by the Financial Secretary. According to China Daily, the Hong Kong government is adopting a “step-by-step” strategy to develop the industry, emphasizing balanced growth with regulation as a foundational step.
Chan went on to explain that the future phases might include stablecoins linked to other assets integrated with the real economy. These stablecoins must have practical applications rather than serve merely as speculative instruments. He highlighted that stablecoins, particularly when pegged to fiat currencies, offer numerous use case scenarios, including enhancing efficiency and reducing costs in cross-border payments.
Corporate Interest in Stablecoin Adoption
Hong Kong’s Financial Secretary also mentioned that several companies have already expressed interest in becoming licensed stablecoin issuers. The HKMA is expected to start granting these licenses in the upcoming months.
Recent reports indicate that numerous firms have applied for the HKMA license this month. Among these are logistics technology company Reitar Logtech and the international wing of China’s fintech behemoth, Ant Group. Furthermore, e-commerce leader JD.com, through its fintech subsidiary JD Coinlink, has been actively testing HKD-pegged tokens under the regulatory sandbox program. This sandbox has seen participation from several financial and tech companies since July 2024.
Liu Peng, CEO of JD Coinlink, expressed optimism about obtaining the HKMA license by early Q4 2025, with plans to launch a JD Stablecoin concurrently. The company recently concluded the second phase of its testing.
Meanwhile, tech giants in the United States are exploring similar avenues to streamline cross-border payments and transaction costs. According to Bitcoinist, major companies such as Apple, X, Airbnb, and Google are in preliminary discussions with crypto firms to integrate stablecoins into their operations. This development aligns with the bipartisan efforts of U.S. lawmakers and the Trump administration to pass two significant crypto-related bills, the GENIUS Act and Clarity Act, ahead of the legislative recess in early August.
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