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ARTICLE · 25 JUNE 2025

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Hong Kong Passes Law On Stablecoins

Jones Day
Jones Day
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With the passage of the Stablecoins Ordinance (the "Ordinance") on May 21, 2025, Hong Kong has taken a big step forward to protect its digital asset market.

Hong KongTechnology
Abradat Kamalpour
Abradat Kamalpour
Ming Kong
Ming Kong
Joelle Lau
Joelle Lau
Graham Lim
Graham Lim
Samuel Ngo
Samuel Ngo
Daniel Shum
Daniel Shum
Dominic Sze
Dominic Sze
Frank Voon
Frank Voon
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With the passage of the Stablecoins Ordinance (the "Ordinance") on May 21, 2025, Hong Kong has taken a big step forward to protect its digital asset market.

The new Ordinance regulates issuers of fiat-referenced stablecoins—digital currencies designed to keep their value steady by being tied to traditional government currencies. The Ordinance takes effect on August 1, 2025, and is among the first of its kind in Asia.

Fiat-referenced stablecoins have surged in popularity recently, especially those tied to the U.S. dollar ("USD") such as Circle's USDC and Tether's USDT. This is despite investor concerns over various regulatory "blind" spots.

The Ordinance aims to address such concerns by increasing oversight and protection for investors in stablecoins. A key reason Hong Kong is well-suited for this is its currency system: Since 1983, the Hong Kong dollar ("HKD") has been officially pegged to the USD within a narrow range (7.75 to 7.85 HKD per USD), meaning a

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