Hong Kong Establishes Regulatory Framework for Stablecoins

Hong Kong has implemented a framework for regulated fiat-referenced stablecoins, paving the way for their use in financial markets. The new Stablecoins Ordinance, passed in May 2025 and overseen by the Hong Kong Monetary Authority (HKMA), sets forth licensing requirements for market operations. While these stablecoins are subject to regulations, they are not considered legal tender within the jurisdiction.