Hong Kong creates global regulatory advantage with stablecoin license

• Hong Kong to begin licensing stablecoins in August
• Hong Kong leads the way in offshore cryptocurrency and yuan regulation
• Stablecoins boost Hong Kong’s strategic position in Asia

Hong Kong Financial Secretary Paul Chan stated The city is set to become one of the first jurisdictions in the world to implement a specific legal framework for stablecoins. Speaking at a forum on Saturday, Chan said the new licensing regime approved by the local legislature will come into effect on August 1.

Hong Kong's stablecoin regulation is now law.
Starting Aug 1, 2025, a license from HKMA is required to issue any fiat-pegged stablecoin.

Pegged to HKD or any fiat? You're regulated—no matter where you're based. #Stablecoins #CryptoRegulation #Web3Compliance pic.twitter.com/7ieEp2V7FS

— Shyft Network (@shyftnetwork) June 23, 2025

According to the secretary, the regulation strengthens the city’s position as an international financial center, especially due to its relevance in offshore yuan transactions — currently, Hong Kong accounts for about 80% of the global volume. Chan stressed: “Strengthening Hong Kong’s role as a global offshore renminbi center is an important responsibility for aligning with national development strategies.”

Hong Kong’s proposal is in line with recent policy from the People’s Bank of China, which has recognized the growing importance of stablecoins and central bank digital currencies in transforming the global payments infrastructure. The bank’s chairman, Pan Gongsheng, also announced the establishment of an e-CNY international operations center in Shanghai, with the aim of expanding the yuan’s influence in the global market.

Since 2023, the Hong Kong Monetary Authority has been taking steps to develop the crypto sector, including the creation of a regulatory sandbox for stablecoin issuers. Participants in the program include Standard Chartered Bank, Animoca Brands, JD Coinlink, and other major local and international players.

During the same forum, Jianguang Shen, vice president of JD.com, suggested that Hong Kong could lead the development of offshore yuan-pegged stablecoins, boosting international monetary competition. Meanwhile, lawmaker Lo Wai-kwok publicly called on authorities to prioritize policies aimed at issuing yuan-pegged stablecoins, aiming to cement the city’s strategic role in the digital asset ecosystem.

JD Coinlink recently tested a Hong Kong dollar-backed stablecoin, while Alipay parent company Ant Group revealed plans to apply for a license to operate in the local stablecoin market. These moves signal that Hong Kong is looking to position itself as a regulatory beacon in the Asian region.