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ARTICLE · 31 JULY 2025

Market Intelligence Thought Leadership Award Winner

There Is A Problem With The Stablecoins Ordinance In Hong Kong – Basil Hwang

Hauzen LLP
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The Stablecoins Bill gazetted on 6 December 2024, was passed by Hong Kong's Legislative Council on 21 May 2025. The Ordinance marks the culmination of a 3+ years process that started on 12 January 2022...

Hong KongTechnology
Hauzen LLP
Hauzen LLP

The Stablecoins Bill gazetted on 6 December 2024, was passed by Hong Kong's Legislative Council on 21 May 2025. The Ordinance marks the culmination of a 3+ years process that started on 12 January 2022, when the Hong Kong Monetary Authority (HKMA) published its first discussion paper on stablecoins.

The Ordinance could unintentionally stifle Hong Kong's ambitions to be a global financial centre for digital assets.

In this article I explain why – and what needs to be done about it.

First, who could the new law have an adverse impact on? Here are a few that I can think of:

Family Offices

It's no secret that Hong Kong is trying to grow its popularity as a base for family offices. It's also increasingly common for family offices to allocate a portion of their assets to crypto. Many advisers today are telling family offices to allocate part of their portfolio to crypto.

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