Hong Kong's Monetary Authority (HKMA) has established a regulatory partnership with South Korea to implement comprehensive stablecoin regulations effective August 1, 2025. The collaboration, announced during Financial Secretary Paul Chan Mo-po's visit to Seoul, specifically targets fiat-referenced stablecoins including USDT and USDC.
The regulatory framework requires issuers to maintain robust reserve management and implement stringent risk controls. Christopher Hui, Secretary for Financial Services, confirmed the licensing regime will initially issue "single digits" of licenses for focused oversight, covering stablecoins pegged to HKD, USD, and potentially CNY. The HKMA's technical standards align with anti-money laundering and counter-terrorism financing requirements.
This initiative aims to enhance cross-border financial connectivity, with Chan noting it has already "attracted funds from South Korea to Hong Kong's stock market." The partnership is expected to increase derivative trading liquidity and institutional participation while establishing precedent through Hong Kong's tokenized bond experiments, following models from Singapore and the EU.