With stablecoins gaining traction worldwide, Hong Kong is pushing forward with its licensing framework in a bid to position itself as a global leader in the thriving sector. According to Financial Secretary Paul Chan, Hong Kong is speeding up plans…With stablecoins gaining traction worldwide, Hong Kong is pushing forward with its licensing framework in a bid to position itself as a global leader in the thriving sector. According to Financial Secretary Paul Chan, Hong Kong is speeding up plans…

Hong Kong accelerates stablecoin licensing to tap into global market boom

2 min read

With stablecoins gaining traction worldwide, Hong Kong is pushing forward with its licensing framework in a bid to position itself as a global leader in the thriving sector.

According to Financial Secretary Paul Chan, Hong Kong is speeding up plans to launch its new stablecoin licensing rules by August 1, 2025. His comments, shared in a June 15 blog post, reaffirm the timeline confirmed earlier this month by the Hong Kong Hong Kong Special Administrative Region Government.

Chan said the push to fast-track the framework is part of a broader plan to boost Hong Kong’s influence in digital finance, highlighting increasing market demand and global interest.

“With the booming digital asset market, the market demand for stablecoins is expected to increase further,” Chan said. 

He further commented on the growing market value of stablecoins, pointing to the US$240 billion global market cap and over US$20 trillion in annual trading volume. Chan added that the government expects that clear licensing rules and a smooth application process will attract global institutions to issue stablecoins in Hong Kong, strengthening the city’s position as a digital asset hub.

Another key point of Chan’s post was the ‘open model’ of the stablecoin laws. Hong Kong’s regulatory approach will allow licensed issuers to peg their stablecoins to multiple fiat currencies, not just the U.S. dollar. This is intended to attract a broader range of use cases and issuers, especially those looking to develop innovative financial tools tied to local economies.

Once the law takes effect, the Hong Kong Monetary Authority (HKMA) will start processing license applications immediately. To get approval, issuers will need to meet risk and anti-money laundering compliance standards and prove real-life use cases for their stablecoins.

Meanwhile, other Asia-Pacific regions are also taking steps toward stablecoin regulation. In South Korea, lawmakers are reportedly pushing for the creation of a legal framework to support Korean won-pegged stablecoins. The growing interest comes as the asset class gains global recognition, with more regions and institutions seeking to legitimize stablecoins as part of their various financial systems.

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