Hong Kong activates stablecoin licensing on August 1 in major digital asset push
2025/07/04 04:40Hong Kong’s stablecoin licensing regime is set to go live on August 1, a move confirmed by Secretary for Financial Services and the Treasury, Christopher Hui.
Speaking at the Hong Kong Digital Finance Awards on July 3, Hui stated the region is committed to building a comprehensive virtual asset ecosystem through a prudent regulatory regime that fosters market innovation.
The new regulations are a central part of Hong Kong’s updated digital asset agenda, “Policy Statement 2.0,” which was released in late June and builds upon a framework from October 2022. This policy establishes the “LEAP” framework, a strategy focused on Legal streamlining, Expanding tokenized products, Advancing use cases, and People and partnership development.
Under the upcoming stablecoin ordinance, any entity issuing fiat-referenced stablecoins in Hong Kong must acquire a license from the Hong Kong Monetary Authority (HKMA). As detailed in official government documents, a key rule is the requirement for stablecoins to be fully backed by reserves of high-quality, liquid assets. This measure is designed to protect investors and ensure financial stability.
The push for a regulated stablecoin market is coupled with a significant focus on tokenizing real-world assets (RWA). The government plans to regularize the issuance of tokenized government bonds and promote tokenizing other assets, such as precious metals, to improve liquidity and market access. In support of this, the Financial Services, the Treasury Bureau, and the HKMA are conducting a legal review to streamline regulatory processes for tokenized instruments.
To further develop the market, authorities have clarified the stamp duty treatment for tokenized ETFs to encourage secondary market trading and are drafting regulations for tax incentives on profits from certain blockchain activities.
Major tech firms like Ant Group have already signaled their intent to apply for a stablecoin issuance license once the new regime is active.
The post Hong Kong activates stablecoin licensing on August 1 in major digital asset push appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CyberLeek threatens full GTA 6 leak if Solana token hits $30 million
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.
Crypto prices
More
