Hong Kong Tightens Stablecoin Licensing: What's in Store for the Market from August 2025

Hong Kong will formally introduce strict licensing restrictions for stablecoin issuers from August 1, 2025. According to Hong Kong Financial Secretary Paul Chan, the Hong Kong Monetary Authority (HKMA) will only issue licenses to companies that can demonstrate the sustainability of their business model and meet a set of high standards.

The new regulations require applicants to have a detailed and realistic business plan, a transparent governance structure, and to fully back their stablecoins with high-quality assets. This can be cash or government bonds worth at least HK$25 million (approximately $3.2 million). This approach is intended to minimize risks for consumers and the entire financial system.

Prospective issuers are also required to implement financial risk management systems, including measures to ensure liquidity in the event of market shocks. In addition, companies must regularly conduct stress testing to confirm their financial resilience in various scenarios.

Paul Chan noted that as a result of such requirements, the number of licensed stablecoin issuers in the region will likely remain in the “single digits.” This indicates the authorities’ intention to maintain strict control over the sector and prevent the emergence of systemic risks.

Amid tightening regulations in Hong Kong, reports have emerged that Chinese tech giants JD.com and Ant Group have applied to issue yuan-pegged stablecoins. According to Reuters, the companies have already held consultations with the National Bank of China, discussing possible terms for the launch of digital assets.

Hong Kong is thus aiming to become a global crypto hub with an emphasis on sustainability and trust, limiting access to the market to only the most reliable players.