Hong Kong is taking significant steps towards regulating its stablecoin market, with key details announced for its new licensing regime. Effective August 1, 2025, the Hong Kong Legislative Council has approved a regulatory framework specifically designed to govern stablecoin issuers. This move aims to bolster the legitimacy of these digital currencies within Hong Kong’s financial system, significantly impacting both domestic and international markets. While the regulations don’t bestow legal tender status on stablecoins, they do introduce a licensing process and strict supervision requirements for companies operating in this space. Notably, this new framework emphasizes transparency and investor protection, drawing parallels with regulatory frameworks that have successfully promoted market legitimacy in other jurisdictions. )