HKMA Stablecoin Rules Explained: How it Will Affect the Future of Digital Money

Hong Kong is taking a bold step toward becoming a global crypto and fintech hub. 

On August 1, 2025, the Hong Kong Monetary Authority (HKMA) officially implemented its stablecoin licensing framework, requiring all issuers of fiat-referenced stablecoins to be licensed. 

This move marks a significant shift in how digital assets are governed in one of Asia’s major financial centers.

With jurisdictions like the European Union (MiCA) and the United States (Genius Act) also rolling out regulations, HKMA stablecoin rules are set to influence how other countries shape their policies. 

But what exactly does this mean for stablecoin issuers, investors, and the broader crypto ecosystem?

HKMA’s Stablecoin Regulation: What’s New?

The new HKMA stablecoin policy introduces strict licensing requirements for any entity wishing to issue fiat-pegged stablecoins (also known as fiat-referenced stablecoins or FRS). Issuers must now:

• Maintain fully backed reserves equivalent to the stablecoin supply.
• Establish robust stabilization mechanisms.
• Comply with anti-money laundering (AML) and counter-terrorism financing (CTF) standards.
• Apply for a license to issue or operate stablecoins linked to the Hong Kong dollar or any foreign currency.

This regulation positions Hong Kong ahead of many global economies in formalizing its digital money landscape.

Read Also: Hong Kong Dominates Crypto Growth in Eastern Asia: Chainalysis Insights

Why Is the HKMA Regulating Stablecoins?

According to HKMA, the goal is to "foster responsible innovation" while protecting investors and maintaining financial stability. 

Stablecoins, unlike highly volatile cryptocurrencies, are pegged to fiat currencies and often used for cross-border payments, trading, and real-world asset tokenization. Their growing popularity prompted the need for clear, enforceable standards.

The HKMA stablecoin rules aim to ensure that only stablecoins with real, verified backing and proper risk management can circulate in the Hong Kong market. This aligns with HKMA’s vision of becoming a trusted center for digital financial services.

Opportunities move fast in crypto, but informed users move faster. Keep up with the newest trends and tools by reading the Bitrue Blog today.

Types of Stablecoins and What the HKMA Covers

The law applies specifically to fiat-referenced stablecoins—digital tokens pegged 1:1 to currencies like the Hong Kong dollar, US dollar, or commodities like gold. 

These include well-known tokens such as USDT (Tether) and USDC (USD Coin), though neither has a license to operate in Hong Kong as of now.

Importantly, the framework is currency-agnostic, meaning issuers can peg to any fiat currency, not just HKD. 

However, the first major players in HKMA’s sandbox program—RD InnoTech, Animoca Brands + Standard Chartered, and JD.com’s Jingdong Coinlink—are focusing on HKD-backed stablecoins.

Read Also: Hong Kong and Korea are Partnering to Create a Stablecoin Bill!

Why Peg to the Hong Kong Dollar?

Several issuers see potential in pegging to the HKD rather than the USD. Hong Kong's position as a gateway between mainland China and global markets, along with its US dollar peg, gives the HKD a unique appeal.

Rita Liu, CEO of RD Technologies, noted the strategic importance of issuing HKD stablecoins as a way to support Hong Kong's Web3 ambitions. 

Others, like Animoca Brands’ Evan Auyang, see it as a bridge for Chinese capital into global markets while bypassing traditional SWIFT systems.

How Will This Affect the Future of Digital Money?

1. Institutional Legitimacy

The HKMA crypto regulation legitimizes the use of stablecoins in mainstream finance. Big players like banks, fintech companies, and telecoms are entering the market under a clear legal framework, likely increasing adoption.

2. Cross-Border Payments

HKD-backed stablecoins could become the preferred medium for international business-to-business (B2B) payments, offering faster settlements and reduced costs for exporters, especially in Asia.

3. Financial Inclusion

Stablecoins may allow individuals without access to traditional banking to transact globally, earn yield, and engage in digital commerce—especially in underserved markets.

4. Boosting Hong Kong's Status

As the first mover in Asia with such a detailed regulation, Hong Kong is positioning itself as a hub for digital finance innovation, potentially attracting projects from all over the world.

Read Also: Hong Kong’s New Stablecoin Ordinance Draws Over 40 Applications

Is It Safe?

The HKMA digital money regulation prioritizes safety, transparency, and accountability. 

By requiring 100% reserve backing, detailed disclosures, and compliance with global AML standards, the framework seeks to prevent the kind of collapses seen with unregulated stablecoins in the past.

However, the true test lies in enforcement and the HKMA's ability to adapt the policy as the ecosystem evolves.

Which Companies Are Leading the Way?

So far, only a handful of companies have entered HKMA's sandbox, including:

• RD InnoTech (a fintech subsidiary of RD Technologies)
• A consortium of Animoca Brands, Standard Chartered, and HKT
• Jingdong Coinlink Technology Hong Kong (a JD.com subsidiary)

Each of these groups is gearing up to issue a HKD-pegged stablecoin, with live applications expected by the end of September.

Read Also: The Differences of Stablecoin Regulation in the U.S. vs Hong Kong

FAQ

What is the HKMA stablecoin policy?

The HKMA stablecoin policy is a regulatory framework that requires all fiat-pegged stablecoin issuers in Hong Kong to be licensed, maintain full reserves, and comply with AML and CTF measures.

Why did Hong Kong introduce stablecoin rules?

To manage risk, ensure investor protection, and support the growth of a safe and sustainable digital finance ecosystem.

Who needs a license under the HKMA crypto rules 2025?

Any entity that issues or facilitates fiat-referenced stablecoins targeting users in Hong Kong, regardless of where the company is based.

Are USDT and USDC legal in Hong Kong now?

Not yet. As of now, they are not licensed under the new HKMA stablecoin framework.

Will the new rules affect retail crypto users?

Indirectly, yes. More secure and transparent stablecoins may lead to broader adoption and safer use cases for retail users in Hong Kong and Asia.