On August 1, 2025, Hong Kong's Stablecoins Ordinance came into effect under the HKMA, creating a comprehensive licensing regime for fiat-referenced stablecoins (FRS). Issuers must meet strict reserve requirements, governance controls, AML/KYC, and cybersecurity standards, aligning with Basel principles. The HKMA anticipates just a few licenses initially, focusing on institutional-grade and business-to-business use cases. 1:1 backing, redemption within 1 business day, no unreasonable fees for redemption, and no interest/yield. First set of Stablecoin Licenses are expected to be announced in March 2026.
Applicable Laws:
The Stablecoins Ordinance (Cap. 656) of Hong Kong - https://www.elegislation.gov.hk/hk/cap656
