As of August 1, 2025, Hong Kong’s new regulatory framework for stablecoins is officially in effect, driven by the Stablecoin Ordinance [2]. To secure a license, businesses issuing stablecoins must be incorporated within Hong Kong and maintain a full, one-to-one reserve of fiat currency to back each coin. Furthermore, they are obligated to strictly adhere to regulations designed to combat money laundering (AML) and the financing of terrorism (CFT) [2]. The Securities and Futures Commission (SFC) of Hong Kong will oversee adherence to these new rules and has issued warnings regarding the escalating potential for fraudulent schemes and speculative trading linked to stablecoins [3].
The market’s reaction has been polarized. Some companies have reacted positively by pursuing license applications. However, financial authorities have cautioned against misleading statements and unsupported promotional activities that have begun to surface. Yip Chi-hang, a top executive at the SFC, has urged investors to exercise sound judgment and avoid being influenced by short-term price swings or market hype surrounding these digital assets [3]. Several stablecoin entities operating in the region have declared drops in value, with losses hitting double-digit percentages right after the regulations came into force [7].
Despite the regulatory changes, the number of complaints related to virtual assets hasn’t increased notably. In the first six months of 2025, authorities recorded 265 such cases. Even so, the SFC highlights that the complaints they do receive often involve severe problems such as fraudulent actions, losses from security breaches on trading platforms, and accusations of money laundering [3]. Regulatory bodies persistently emphasize that investing in platforms not subject to regulation carries significant dangers, likening it to a high-risk game of chance for investors [3].
Several companies are already adjusting to this evolving environment. CMB International, a division of China Merchants Bank, has initiated what is considered to be the first licensed cryptocurrency exchange in Hong Kong [6]. Concurrently, Anchorpoint, a collaborative venture involving Animoca Brands, Standard Chartered, and Hong Kong Telecom, has submitted an application for a stablecoin issuer’s permit and is currently evaluating its proposals within the Hong Kong Monetary Authority’s regulatory sandbox [10].
The SFC and the Hong Kong Monetary Authority have affirmed their dedication to promoting a secure and transparent ecosystem for stablecoin-related activities while also supporting innovation in the digital asset industry [3]. As the regulatory landscape matures, Hong Kong aims to establish itself as a major hub for the advancement of stablecoins, especially concerning international payments and potential yuan-denominated options [9]. Firms that prove their ability to follow the new regulations stand to gain a significant advantage in an increasingly regulated and competitive marketplace [3].
[1] Hong Kong Regulator Warns of Stablecoin Scam Risks (https://www.livebitcoinnews.com/hong-kong-regulator-warns-of-stablecoin-scam-risks/)
[2] Hong Kong warns of fraud risk after new stablecoin rules (https://www.tradingview.com/news/cointelegraph:9d91ec865094b:0-hong-kong-warns-of-fraud-risk-after-new-stablecoin-rules/)
[3] Hong Kong Securities and Futures Commission: The risk of (https://news.futunn.com/en/post/60726016/hong-kong-securities-and-futures-commission-the-risk-of-fraud)
[6] China Merchants Bank subsidiary launches crypto (https://www.tradingview.com/news/cointelegraph:8fc7dc2b9094b:0-china-merchants-bank-subsidiary-launches-crypto-exchange-in-hong-kong/)
[9] Stablecoins: Latest News and Updates (https://www.scmp.com/topics/stablecoins)
[10] Animoca, Standard Chartered, and HKT Form Joint (https://cryptorank.io/news/feed/0cc77-animoca-standard-chartered-hong-kong-stablecoin-license)