ARTICLE · 08 AUGUST 2025

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Hong Kong's Licensing And Regulatory Framework For Stablecoins Is Now In Effect

Davis Polk & Wardwell

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Hong Kong's licensing and regulatory framework for fiat-referenced stablecoins came into effect on 1 August 2025, regulating the issuance, offering and marketing of fiat-referenced stablecoins in Hong Kong.

Hong KongFinance and Banking

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Hong Kong's licensing and regulatory framework for fiat-referenced stablecoins came into effect on 1 August 2025, regulating the issuance, offering and marketing of fiat-referenced stablecoins in Hong Kong.

1. Summary of the Stablecoins Ordinance

To recap, the Stablecoins Ordinance (Ordinance) applies specifically to stablecoins that aim to maintain a stable value with sole reference to fiat currencies (Fiat-Referenced Stablecoins or FRS).

A license from the Hong Kong Monetary Authority (HKMA) is required by (1) FRS issuers in Hong Kong and (2) Hong Kong dollar-linked FRS issuers outside of Hong Kong.

Entities that actively market FRS to the Hong Kong public are also required to be licensed.¹

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