The central banking authority of Hong Kong has announced a new regulatory framework for stablecoin issuers. Starting August 1, the Hong Kong Monetary Authority (HKMA) will implement guidelines aimed at increasing transparency, accountability, and investor protection in the use of stablecoins and related digital assets.
Key Regulatory Areas
The finalized rules cover two primary areas:
- Regulatory oversight of stablecoin issuers: Issuers must comply with strict guidelines, including obligations aligned with anti-money laundering (AML) and counter-terrorism financing (CTF) standards.
- Creation of a public registry: The HKMA will launch an online public registry listing all licensed stablecoin issuers. This registry will help ensure consumers engage only with providers that meet Hong Kong’s regulatory standards.
According to HKMA’s website, the public will be able to consult the register to verify the legitimacy of stablecoin operators in the near future.
No Licenses Yet — Caution Advised
As of now, no company has received a stablecoin license in Hong Kong. The HKMA strongly urges the public to remain cautious and avoid trusting anyone claiming to be licensed or “in the process” of getting approval. While users can hold or trade unlicensed stablecoins, they do so at their own risk.
Eddie Yue, Chief Executive of the HKMA, highlighted that recent hype around stablecoins has inflated trading activities and stock price surges that are not grounded in regulatory approval. He emphasized the importance of tempering expectations, citing that many applicants lacked clear plans or technical readiness.
Initially, only a small number of licenses will be granted to firms that meet operational and technical criteria.
Deadlines for Interested Applicants
The HKMA has opened the window for expressions of interest starting August 1. To be considered in the first batch of approvals, full applications must be submitted by September 30.
Applicants must demonstrate:
- Robust technical capabilities
- Clear and actionable business plans
- Full compliance with operational and financial standards
Stablecoin Scams Rise in Mainland China
While Hong Kong works toward a regulated environment, crypto scams are on the rise in Mainland China. Officials in Shenzhen recently issued public alerts warning residents about fake stablecoin investment schemes operated by unlicensed entities.
These scams exploit the public’s limited understanding of stablecoins and trick them into investing in fraudulent platforms. Authorities urge people to verify legitimacy before participating in any crypto financial activity.
Conclusion
Hong Kong is paving the way for robust crypto regulation in Asia by introducing licensing rules and a public registry for stablecoin issuers. The HKMA’s approach emphasizes market trust, user safety, and technical accountability—laying the groundwork for a more secure digital finance ecosystem.
With stablecoin adoption accelerating globally, Hong Kong’s regulatory clarity could position it as a regional leader in regulated digital finance. Still, as the market develops, public awareness and caution remain critical to avoid fraud and misinformation.
