Starting August 1, 2025, new rules will come into effect in Hong Kong for issuers and owners of stablecoins. From now on, all issuers of such assets are required to obtain a license, and every stablecoin owner must undergo identity verification.
This is reported by Business • Media
New Licensing Requirements for Stablecoin Issuers
The Hong Kong Monetary Authority (HKMA) has announced that the application period for licenses for stablecoin issuers will run from August 1 to September 30, 2025. All companies wishing to operate in this market must not only comply with the new requirements but also demonstrate the effectiveness of their anti-money laundering and counter-terrorism financing (AML/CFT) measures.
“If a licensee cannot convincingly demonstrate to the HKMA the effectiveness of their anti-money laundering [AML] measures, the identity of each stablecoin owner must be verified,” states the final guidance on AML/CFT.
Identity verification for owners can be conducted by the stablecoin issuer itself, a regulated financial institution, a virtual asset service provider, or a “reliable third party.” A list of licensed companies will be published on the official HKMA website. Users holding unlicensed stablecoins do so at their own risk.
Quality Control and Consultations
The HKMA also emphasized that market participants should refrain from public statements that could be misleading.
“As of today, no licenses have been issued,” the authority clarified.
Additionally, summaries of consultations with stakeholders, final guidance on supervision, compliance with AML requirements, explanatory materials on licensing, and transitional provisions for existing issuers have been published.
The monetary authority also noted that blockchain analytics can enhance compliance measures; however, its effectiveness for comprehensive risk management has not yet been confirmed.
It is worth noting that in April 2025, Hong Kong’s Financial Secretary Paul Chan announced changes to legislation regarding the regulation of stablecoins and staking in ETFs.