A New Era of Stablecoin Regulation: Analyzing Hong Kong's Stablecoin Ordinance

On May 29, 2025, Hong Kong officially released the "Stablecoin Ordinance," which will take effect on August 1. This event has attracted widespread attention both within and outside the industry. This article will detail the core content of the ordinance and explore its potential impact on the industry.

I. Interpretation of the Regulatory Framework of Hong Kong's Stablecoin Ordinance

1. Regulatory subject

The regulations limit the subjects of supervision to "designated stablecoins", which are stablecoins pegged to fiat currencies. These stablecoins are fully referenced to one or more official currencies, units of account designated by the monetary authority, or forms of economic value storage to maintain value stability.

2. Restricted activity range

Regulated stablecoin activities include:

• Issue specified stablecoin in Hong Kong
• Issue specified stablecoins pegged to the Hong Kong dollar overseas
• Other activities designated by the financial management officer
• Promote the above activities to the public

3. License application requirements

Applying for a stablecoin license requires meeting the following main conditions:

• Contribute no less than 25 million Hong Kong dollars in capital or equivalent assets
• Configure corresponding high-quality reserve assets
• Establish a完善的 redemption mechanism
• Ensure that the management team has the expertise and experience.
• Establish a risk management and internal audit system
• Establish anti-money laundering and counter-terrorism financing measures
• Information Disclosure and Business Recovery Plan

4. Compliance Obligations of Licensees

After obtaining the license, the licensee must fulfill the following main obligations:

• Pay an annual fee of 113,020 HKD
• Public display license number
• Continuously meet the minimum standards
• Report significant changes in a timely manner.

5. User Protection Mechanism

The regulations protect the rights and interests of stablecoin users in the following ways:

• Strictly regulate the promotional and marketing activities of license holders
• License holders are required to have sufficient reserve assets.
• Establish an audit mechanism to ensure that the reserve assets match the issuance volume.
• Prohibit suspending redemption without reason or setting harsh redemption thresholds.

6. Regulatory Authority of the Monetary Authority

The financial management officer has extensive regulatory authority, including:

• Approval and Licensing Authority
• Daily regulatory authority
• Investigative and evidence-gathering authority

2. The Important Significance of the Stablecoin Regulations

1. Policy level: Establish a stablecoin regulatory system to seize the "digital currency issuance rights".

2. Web3 World: Driving end-to-end closed loops for RWA, providing projects with access to larger scale assets.

3. Renminbi stablecoin: provides policy imagination space and "experimental field" experience for future exploration.

3. Conclusion

The implementation of the Hong Kong "Stablecoin Regulation" has opened a new era of global stablecoin regulation. This is not only an innovation in local financial policy but also a strategic exploration of the Web3 ecosystem, RWA, and even the global monetary landscape. The enforcement of the regulation provides a clear roadmap for the legalization, systematization, and industrialization of stablecoins, bringing opportunities and challenges to the entire Web3 world.