Hong Kong’s financial landscape is set to change as the new stablecoin regulation takes effect on August 1, 2025. Financial Secretary Paul Chan revealed that digital assets have driven significant trading volumes in local banks, totaling HKD 17.2 billion last year.
The regulation introduces a licensing regime for stablecoin activities, aiming to attract global issuers and enhance market liquidity.
Hong Kong’s Stablecoin Regulation Takes Effect in 2025
Financial Secretary Paul Chan announced that Hong Kong’s new stablecoin regulation will start on August 1, 2025. Trading volumes for digital assets at local banks exceeded HKD 17.2 billion last year. This move, highlighted in his essay, “Speeding Up and Steady Sailing”, aims to boost financial institutions.
With the regulation’s introduction, stablecoin issuers can anchor to multiple fiat currencies rather than just the Hong Kong dollar. This flexibility is expected to increase liquidity and improve Hong Kong’s appeal as a financial hub. The legislation provides a structured environment, paving the way for sustainable growth.
Paul Chan (Chen Maobo), Financial Secretary of Hong Kong, emphasized the potential of digital asset development, stating: “Speeding Up and Steady Sailing” highlights the catalytic effect of digital asset development on local financial institutions.
Hong Kong’s Strategic Positioning in Digital Finance
Did you know? Hong Kong has been a leader in digital asset innovation, setting global precedents with its comprehensive virtual asset trading platform licensing since 2020.
Bitcoin (BTC) remains a significant player in Hong Kong’s crypto landscape, priced at $105,894.24, per CoinMarketCap. With a market cap of $2.10 trillion, BTC dominates 63.74% of the market. Its 24-hour trading volume stands at $38.20 billion, up 10.86%, demonstrating robust interest and trading activity.
According to the Coincu research team, Hong Kong’s strategic positioning in digital finance creates opportunities for innovation while ensuring market reliability. Analysts highlight that its balanced regulatory framework could serve as a template for others looking to regulate the digital asset market effectively.
