Hong Kong Enacts Stablecoin Ordinance, Launches High-Threshold Licensing Regime

• Hong Kong has passed the Stablecoin Ordinance, establishing a licensing regime that treats stablecoins as payment tools.
• The Hong Kong Monetary Authority draws inspiration from the EU’s MiCA framework.
• The ordinance aims to prevent market overheating and strengthen Hong Kong’s role as a global fintech hub.

Hong Kong is implementing a stringent new licensing regime for stablecoin issuers, a move designed to cement the city’s status as a regulated hub for digital assets. Under the new Stablecoin Ordinance, however, there’s a key requirement: stablecoins must be anchored to the city’s legal tender.

The regulation aligns with a global push to bring stablecoins under formal oversight.

Focus on Payments, Not Speculation

The Hong Kong Monetary Authority (HKMA) has positioned stablecoins primarily as payment instruments rather than investment assets. According to HKMA Chief Executive Eddie Yue, this distinction is key to managing market expectations and risks. 

The ordinance enforces high licensing thresholds, focusing on “practical application scenarios” and “business sustainability” to ensure that only compliant and capable issuers enter the …

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