Hong Kong Monetary Authority issued a statement: No licenses have been issued to date, the first batch of names will be announced early next year.

At midnight on August 1, 2025, Hong Kong's "stablecoin regulation" will officially come into effect, marking the implementation of the world's first comprehensive regulatory framework for fiat-backed stablecoins. This long-awaited financial regulatory transformation, which has been in the making for several years, will not only reshape the virtual asset ecosystem in Hong Kong but also establish a new benchmark for global digital financial regulation. In the final 72-hour countdown phase, the Hong Kong Monetary Authority issued four key documents on July 29, laying the groundwork for the implementation of this institutional transformation:

According to the announcement by the Monetary Authority regarding the "Implementation of the Regulatory Framework for Stablecoin Issuers," four documents constitute the core pillars of the regulatory framework—integrating feedback from 28 industry responses, the "Regulatory Guidelines for Licensed Stablecoin Issuers" erects a high wall for capital and reserve management; based on revisions from 38 opinions, the "Guidelines for Combating Money Laundering and Terrorist Financing" includes non-custodial wallets within the regulatory scope; the "Summary of the Licensing System for Stablecoin Issuers" delineates the application path; and the "Summary of Transitional Provisions for Existing Stablecoin Issuers" lights up a compliance green light for existing players. The Monetary Authority repeatedly emphasized in the announcement that no licenses have been issued as of today.

Core of the regulatory framework: high thresholds, strict risk control, strong protection

The Hong Kong Monetary Authority constructs a regulatory system with a prudent attitude. The scarcity of licenses has become the primary feature of the new regulations—HKMA Chief Executive Eddie Yue has emphasized multiple times that initially only a "small number of licenses" will be granted, with the quantity expected to be in single digits. This "better to have none than to have too many" attitude highlights the regulatory body's cautious consideration of the market's stable development.

Capital strength has become the first hard threshold. According to the "Summary of the Stablecoin Issuer Licensing System", applicants must have a paid-up capital of no less than 25 million HKD, and must be a corporation or recognized institution registered in Hong Kong. This requirement directly keeps small players with insufficient risk resistance out of the door.

The management of reserve assets is subject to stricter requirements. The reserve assets supporting the stablecoin must meet the three principles of "full backing + high liquidity + strict segregation":

Asset value must always cover the face value of stablecoins in circulation.

Only cash and high-quality assets such as government bonds.

Independently stored with regulated custodians.

The anti-money laundering defense line has been upgraded simultaneously, and the new guidelines explicitly require additional risk controls for transactions involving non-custodial wallets, mandating compliance with the "Travel Rule" under the Anti-Money Laundering Regulations to ensure traceability throughout the funds' flow. The Monetary Authority emphasizes that it will adopt a risk-based regulatory approach, but license holders must bear ultimate responsibility.

It is worth noting that algorithmic stablecoins are explicitly excluded from regulatory oversight, and these types of coins without substantial asset backing will continue to exist in a gray area.

The license application has been opened, and the timetable clarifies the roadmap.

With the new regulations coming into effect on August 1, the license application channel has officially opened. The Monetary Authority has outlined a clear path for those interested in entering the market:

Interested institutions can contact the Monetary Authority for preliminary communication and regulatory feedback before August 31.

Well-prepared applicants should submit their formal application materials by September 30 to strive for inclusion in the first batch of review queues.

The Assistant Chief Executive of the Monetary Authority, He Hanjie, specifically pointed out at the technical briefing that the assessment will focus on the "three principles": compliance, specificity, and sustainability. Among them, "specificity" requires applicants to clearly define the actual application scenarios and business plans for the stablecoin, avoiding vague concepts. According to the "Licensing Regime Summary", license holders must continuously fulfill disclosure obligations and risk management responsibilities, or they may face the risk of license revocation. The Financial Commissioner is granted regulatory authority to ensure financial stability.

The licensing process will be ongoing. The Vice President of the Monetary Authority, Chen Weimin, clearly stated that September 30 is not the final deadline, and institutions that have not entered the first batch still have a chance. The first batch of license list is expected to be announced in early 2026.

Reshaping the financial landscape, Hong Kong seizes the high ground of digital assets.

The strategic significance of the new regulations far exceeds the license itself; it is reshaping Hong Kong's position in the international financial landscape.

The revolution in cross-border payment efficiency has already manifested. In a testing case by Standard Chartered Bank, a cross-border transaction of 120 million HKD completed through a compliant stablecoin settlement system took only 27 seconds, with fees less than 20% of traditional channels. This stands in stark contrast to the average processing time of 2.3 days in the SWIFT system.

The most groundbreaking aspect of the policy is the support for the parallel development of multiple fiat stablecoins. The offshore RMB stablecoin from Bank of China Hong Kong has undergone stress testing on the XBIT platform, opening up new paths for the internationalization of the RMB. Li Yang, Chairman of the National Finance and Development Laboratory, pointed out that we should "rely on Hong Kong's status as a financial center to develop offshore RMB stablecoins and build controllable international payment channels."

The application scenarios focus on the real economy. The first batch of stablecoins will prioritize services in two major areas: cross-border trade and Web 3.0. Shen Jiangguang, Vice President of JD Group, revealed that its stablecoin aims to "enhance global supply chain and cross-border payment capabilities."

Regulators are speaking out intensively, and investors need to be vigilant about risks.

At critical junctures of the system implementation, the Hong Kong regulators frequently issue warnings about risks.

The Chief Executive of the Monetary Authority, Yu Weiman, warned of the risk of a "double bubble" in the market: on one hand, there is excessive conceptualization, with many institutions talking about visions but lacking implementation plans; on the other hand, the market is overly excited, with some companies speculating on stock prices using the concept of stablecoin.

The implementation of the regulations brings clear legal boundaries: any promotion of unlicensed stablecoins to the public in Hong Kong is illegal. The Deputy Secretary for Financial Services and the Treasury, Chen Haolian, reminds investors: "When faced with promises of high returns, it is essential to exercise caution and verify whether the issuer holds a legal license."

The path for retail participation is clear: only authorized stablecoins by the Monetary Authority should be selected for trading through licensed virtual asset service providers (VASP), and reserve audit reports should be reviewed regularly. Existing stablecoin issuers must adjust their compliance according to the "Summary of Transitional Provisions."

Implementation process of the system

The two sets of regulatory guidelines will come into effect on August 1, 2025, and market participants must fully comply with the "stablecoin regulations." The Monetary Authority reiterated at the end of the announcement: "As of today, no licenses have been issued."

Ant International, Standard Chartered Bank and other sandbox testing institutions have indicated that they will submit applications. Hong Kong is exploring a unique path with the "Regulatory Sandbox 2.0" model - seeking a balance between the rigor of traditional finance and blockchain innovation, avoiding the fragmented regulatory dilemma in the United States, while also breaking through Japan's total prohibition mindset, seizing the high ground of digital finance through institutional openness.

Author: Liang Yu Editorial Review: Zhao Yidan