Hong Kong Financial Secretary: Targeting Issuance of Stablecoin Licenses Within This Year

The Stablecoin Ordinance is set to take effect in Hong Kong this August. On July 7, Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong SAR Government, noted that the Hong Kong Monetary Authority is actively consulting stakeholders on draft implementation guidelines. These forthcoming rules—anticipated to be issued within the month—will outline anti-money laundering protocols and related regulatory requirements.

Hui clarified that the total number of stablecoin licenses issued under the ordinance will remain limited to single digits. He expressed optimism that applications would begin arriving once the ordinance is in force, with the intention to approve licenses before year’s end. Addressing whether financial institutions could issue stablecoins pegged to the Renminbi, Hui explained that such plans would require engagement with the relevant monetary authorities when foreign currencies are involved.

Passed on May 21 by the Legislative Council of the Hong Kong SAR, the Stablecoin Ordinance Bill has been welcomed by the regional government. The legislation establishes a licensing system for fiat-backed stablecoin issuers and seeks to reinforce Hong Kong’s regulatory structure for virtual assets, promote financial security, and foster innovation in the financial sector.