Hong Kong stablecoin law has officially been approved by the Legislative Council, positioning the region as a future leader in Asia’s digital economy. The new regulation requires all stablecoins to be fully backed by fiat currency and licensed by the Hong Kong Monetary Authority (HKMA).
Licensing for stablecoin issuers is set to begin by the end of 2025, with top international companies able to apply before the year ends. This legislative move is seen as a key step in Hong Kong’s strategy to establish itself as a major Web3 hub.
Hong Kong’s Web3 Strategy Backed by Stablecoin Regulation
The Hong Kong stablecoin law is not an isolated step—it’s part of a broader plan to integrate regulated stablecoins into the daily economy. “We aim to drive real Web3 use cases such as retail payments, cross-border trade, and P2P transactions,” said Legislative Council member Johnny Ng Kit-Chong. He emphasized that the next phase involves infrastructure development to support these applications.
Hong Kong’s government is actively seeking collaboration with global fintech players, offering support for those looking to launch under the new licensing framework.
Yield-Bearing Stablecoins: A Competitive Edge
In a progressive twist, the Hong Kong stablecoin law also opens the door for yield-bearing stablecoins—tokens that offer interest to holders. Authorities believe this will make stablecoins more attractive to users, while increasing competition in the global crypto market.
As the US tightens regulations and Europe advances slowly, Hong Kong is seizing the opportunity to attract talent, capital, and innovation.
