Hong Kong positions itself as a stronghold of regulation on stablecoins, making a decisive shift to protect investors and the local financial system.
The Hong Kong Monetary Authority (HKMA) has published a detailed regulatory framework and guidelines, which will come into effect with the implementation of the Stablecoins Ordinance from August 1, 2025, mandating the compulsory licensing requirement for stablecoin issuers.
Additionally, establishing enhanced supervision over the entire sector, with the aim of uncovering fraud and strengthening anti-money laundering controls.
Stablecoin Guidelines in Hong Kong: Licenses, Transparency, and New Requirements
The new rules dictate strict criteria for accessing the stablecoin issuance license in Hong Kong. Among the main new features introduced:
- License requirement for all issuers and operators active in the local area, effective from August 1, 2025.
- License applications must be submitted by September 30, 2025, in order to be assessed by the HKMA.
- Strict standards on transparency, capital solidity, and cybersecurity systems, including minimum capital requirements and fully backed reserves in fiat currency or liquid equivalents.
- Periodic checks and direct HKMA supervision on operators that will be included in the new official register.
According to the official HKMA guidelines, only companies that demonstrate full compliance will be able to be included in the public register of authorized stablecoin issuers.
The HKMA will establish a publicly accessible online register, where all entities that have obtained the license will be listed. As of today, in July 2025, no company has yet been admitted: it is estimated that initially only 3-4 licenses will be granted.
Consequently, the authority warns against anyone posing as a regulated operator, highlighting the dangers for less experienced investors.
Anti-money laundering (AML) and counter-terrorist financing (CTF) regulations are now fundamental pillars of the reform.
HKMA requires stablecoin issuers to implement rigorous AML and CTF procedures, favoring only those who ensure maximum transparency and continuous monitoring of transactions.
The financial solvency of operators is assessed with very strict parameters, including the management and segregation of stablecoin reserves guaranteed in fiat currency, with independent auditing. Only a few operators will pass the initial screening by the regulatory body.
The new supervision includes stringent checks on the issuers’ reserves, mandatory customer identification (KYC), and constant monitoring of business procedures.
HKMA has already announced that only a limited group of companies will be authorized in this initial phase, with the expectation that all operators will comply with the security and stability parameters imposed by the authority.
More Guarantees for Investors: The Register as a Shield Against Scams
The official register of authorized operators will represent a key tool for those investing in stablecoin:
- List always updated to verify the regular authorization of the issuers
- Timely warnings about unrecognized subjects or fraud attempts
- Greater protection through periodic audits and transparency obligations on reserve assets and platform operations
In the Chinese context, scams related to stablecoins are increasing. Recently, the authorities of the city of Shenzhen have issued official warnings against fraudulent investment proposals promoted by unauthorized operators.
By speculating on the lack of financial literacy, these groups attract unsuspecting citizens with promises of unrealistic returns, putting the assets of thousands of users at risk.
- Always check the official HKMA register before relying on new operators
- Ignore those who promise immediate profits or claim unverifiable licenses
- Pay attention to offers marketed via social media or through closed groups: they are often the most risky
Perspectives: Flexible or Strict Criteria? The Next Moves of the HKMA
The supervisory authority will remain uncompromising on access requirements. As stated by the governor Eddie Yue during 2025, many current applications are insufficiently advanced on a technical or operational level:
“The standards remain high because the credibility of the entire market is at stake. We urge investors to use official sources and avoid unclear operators.”
In the coming months, the list of authorized operators will be published and constantly updated.
Periodic reports will accompany the regulatory evolution, allowing for monitoring the real effects of the new rules on the system and on fraud prevention strategies.