Hong Kong authorities to tighten rules for issuing stablecoins
Date: 2025-07-08 Author: Henry Casey Categories: IN WORLD
New rules will come into force in Hong Kong in August, according to which only those companies that can convince the Hong Kong Monetary Authority (HKMA) of the reliability and sustainability of their activities will receive the right to issue stablecoins. This was announced by Paul Chan, the region's financial secretary. The new requirements require the issuer to have a clear business plan, an understandable management structure, and to provide stablecoins with high-quality assets. In particular, companies are required to prove that each issued stablecoin is backed by money or government bonds in the amount of at least 25 million Hong Kong dollars - this is approximately $3.2 million.
In addition to a financial cushion, the regulator insists that issuers establish a risk management system. We are talking about the readiness to cover obligations to token holders even with sharp changes in the market. To do this, projects must regularly undergo stress tests to promptly identify vulnerabilities in their financial model.
According to Chan, the number of companies that will be able to obtain a license to issue stablecoins is unlikely to exceed several units. The authorities intend to keep this market under strict control in order to minimize risks to the financial stability of the region.
Meanwhile, it became known that the largest technology corporations in China - JD.com and Ant Group - recently submitted applications to the People's Bank of China. They have already held talks with the regulator, where they discussed the details of the possible issue of stablecoins tied to the yuan. This shows that interest in such instruments in the region continues to grow, despite tightening regulation.
Thus, the Hong Kong authorities are betting not on the quantity, but on the quality of projects. They expect that strict selection will help avoid situations where issuers are unable to fulfill their obligations to investors. The new approach underlines Hong Kong’s commitment to maintaining its status as a reliable financial center and creating clear rules of the game for stablecoin market participants.
The market is expected to react to the changes in the coming months, and companies interested in issuing stablecoins will begin to restructure their business models and strengthen their financial base to meet the regulator’s new requirements.
