FINANCE

Hong Kong Targets Serious Crypto Players With Tough Stablecoin Law

Published: Jun. 24, 2025 4:44 a.m. GMT+8

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Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA). Photo: HKMA

Hong Kong’s financial regulators will begin accepting applications for stablecoin issuance licenses on Aug. 1, ushering in a stringent new regulatory regime designed to attract credible players to the city’s digital-asset industry while limiting financial risks.

The move coincides with the enactment of the Stablecoin Ordinance, which requires prospective issuers to meet rigorous standards comparable with those imposed on banks. Applicants must demonstrate robust risk controls and prove their stablecoins serve “concrete and practical” purposes.

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Hong Kong will start accepting stablecoin issuance license applications on August 1, 2024, under a new, stringent regulatory regime.
The Stablecoin Ordinance, passed after less than 2.5 years of legislative process, requires issuers to meet banking-level standards, including strong risk controls and real use cases.
A regulatory sandbox with three participants is piloting the process, and full guidelines are being finalized after industry consultation.

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Who’s Who

Tether: Tether issues **USDT**, a widely used stablecoin. Stablecoins are cryptocurrencies typically pegged to fiat currencies, like the U.S. dollar, aiming for stable value unlike volatile tokens such as Bitcoin. Tether's USDT is backed by dollar reserves, combining digital asset flexibility with traditional money's predictability.

RD Technologies Group: Based on the article, RD Technologies Group is one of three participants in the Hong Kong Monetary Authority's (HKMA) regulatory sandbox for stablecoin licensing. This sandbox is designed for testing and knowledge-sharing, but participation does not guarantee a license.

JD JDT (Hong Kong): JD JDT (Hong Kong) is a participant in the Hong Kong Monetary Authority's (HKMA) regulatory sandbox. This sandbox is designed to pilot the stablecoin licensing process. However, participation does not guarantee a license; all participants must meet the same rigorous standards as other applicants.

Standard Chartered Bank (Hong Kong): Standard Chartered Bank (Hong Kong) is part of a consortium participating in the Hong Kong Monetary Authority's (HKMA) regulatory sandbox. This sandbox is designed to pilot the stablecoin licensing process. Although participation doesn't guarantee a license, it allows the bank to engage in testing and knowledge-sharing within Hong Kong's new stablecoin regulatory framework.

Animoca Brands: Animoca Brands is participating in a regulatory sandbox established by the Hong Kong Monetary Authority (HKMA) for stablecoin licensing. They are part of a consortium that also includes Standard Chartered Bank (Hong Kong) and HKT. This participation is for testing and knowledge-sharing, and doesn't guarantee a license.

HKT: HKT is part of a consortium, with Standard Chartered Bank (Hong Kong) and Animoca Brands, participating in the Hong Kong Monetary Authority's (HKMA) regulatory sandbox. This sandbox is designed to pilot the licensing process for stablecoin issuers in Hong Kong.

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