Hong Kong Enacts Landmark Stablecoin Regulation

Hong Kong has enacted comprehensive legislation to regulate stablecoins, a significant move that could reshape the regional cryptocurrency landscape. The Hong Kong Monetary Authority (HKMA) will oversee compliance and ensure reserve management standards are met. The new ordinance, which takes effect on May 21, 2025, outlines strict requirements for stablecoin issuers seeking to operate within Hong Kong’s financial system. These include the requirement to hold assets backed by high-quality, liquid assets, ensuring consumer protection and market stability.