Hong Kong’s stablecoin law to take effect in August, building on virtual asset licensing
The stablecoin ordinance passed in May takes effect on August 1, requiring issuers to be licensed by the Hong Kong Monetary Authority

Hong Kong’s new stablecoin ordinance, which requires issuers of assets backed by fiat currency to be licensed, is set to take effect on August 1, according to a government announcement on Friday.
“After the ordinance commences operation, the licensing regime will provide suitable guardrails for relevant stablecoin activities,” Treasury chief Christopher Hui Ching-yu said in a statement. “It will be a milestone in facilitating the sustainable development of the stablecoin and digital asset ecosystem in Hong Kong.”

The stablecoin law is part of a broader effort by Hong Kong to become a cryptocurrency hub. Under a 2023 law regulating other virtual assets, crypto exchanges must be licensed by the Securities and Futures Commission. The government has said its next focus will be on regulating over-the-counter and custodian services for virtual assets.