The Hong Kong Monetary Authority (HKMA) has implemented new regulations requiring licenses for the issuance of digital yuan stablecoins and other fiat-referenced stablecoins, effective from August 1, 2025. This move aims to safeguard financial stability and integrity in Hong Kong's market amid rising activity in yuan-based assets. Unlicensed issuance or promotion will face criminal penalties, including significant fines and potential jail time.
HKMA Chief Executive Eddie Yue emphasized, "Issuing fiat-referenced stablecoins, including those referring to the renminbi, in or from Hong Kong requires a license from August 1. Unlicensed issuance or promotion will be criminalized." The regulator also denied social media rumors about an unauthorized offshore yuan-pegged stablecoin being issued, labeling them as false news and urging investors to verify information through its official public register.
The Stablecoin Ordinance, which took effect on August 1, 2025, mandates that issuers demonstrate compliance with strict operational and transparency standards. HKMA is actively monitoring trading activity and will enforce against violations, with transitional provisions allowing existing issuers to apply for licenses by September 30, 2025. This regulatory shift is expected to reshape Hong Kong's digital currency landscape, potentially pushing liquidity towards HKD- and USD-referenced stablecoins.