Hong Kong’s stablecoin landscape is undergoing a significant transformation. The Hong Kong Stablecoin Ordinance, implemented in August 2025, offers a robust framework for issuing and operating fiat-pegged stablecoins. However, the regulations are increasingly complex, demanding heightened compliance standards. We delve into these stricter requirements and explore how to develop feasible and practical solutions within this evolving landscape. The Hong Kong ordinance necessitates “real-name traceability,” requiring all users to undergo strict identity verification and retention for at least five years. Any anonymous addresses or unauthorized DeFi services are prohibited. These stringent requirements surpass traditional KYC standards typically used by financial institutions, emphasizing the need for innovative security measures that effectively combat forged documents and AI face swapping attacks. Notably, this new era in stablecoin regulation is spearheaded by Hong Kong’s ambitious approach to addressing compliance challenges.