Hong Kong stablecoin licensing 2025

Key Points:* Hong Kong limits initial stablecoin licenses to ensure compliance.

• Focus on cross-border payment solutions initially.
• Potential for significant financial market adaptation soon. In an interview with Cable News’ “Finance and Business,” Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasized the issuance of a small number of stablecoin licenses initially. He noted that legal restrictions do not apply to the pegged currency in the region.

Hong Kong’s move to regulate stablecoins aims to enhance cross-border payment security and mitigate financial system risks for developing countries. This strategy positions Hong Kong as a leader in digital asset regulation.

Limited Stablecoin Licenses Aim to Boost Payment Security

Christopher Hui announced that Hong Kong will issue only a limited number of stablecoin licenses in the initial phase. Applications will be highly selective, focusing on quality compliance. Hui emphasized that no legal restrictions apply to the choice of pegged currency, although discussions are necessary for non-local currencies.

The initiative primarily targets cross-border payments, aiming to assist developing countries facing currency depreciation. Stablecoins issued under this regime can significantly reduce settlement times and lower transfer costs, suggesting a potential transformation in payment infrastructure.

We hope that [stablecoins] will focus on addressing the difficulties and pain points in the real economy, such as cross-border payments, especially when involving local currencies with higher risks, or when the local financial system is not so well-developed, creating certain challenges for cross-border payments. — Christopher Hui, Secretary for Financial Services and the Treasury, Hong Kong

Industry reactions have been largely positive, with over 40 firms expressing interest. JD.com aims to leverage these licenses to reduce cross-border payment costs and enhance transaction speeds. This strong interest highlights confidence in the scheme’s credibility and market potential.

Hong Kong Emulates Singapore’s Regulatory Success in Stablecoin Market

Did you know? Hong Kong’s stablecoin initiative could mirror Singapore’s success, where regulatory frameworks significantly increased market transparency and institutional growth.

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Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 04:30 UTC on July 14, 2025. Source: CoinMarketCap The Coincu research team notes that regulating stablecoins in Hong Kong may encourage institutional adoption and compliance. Enhanced regulatory clarity can lead to more secure cross-border payments and foster innovation in financial products, possibly setting a precedent for similar regulatory actions worldwide. For more insights on digital asset regulations, you can follow updates from The Block on X platform.

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