Hong Kong regulator to introduce mandatory identification of all stablecoin owners
Date: 2025-07-31 Author: Oliver Abernathy Categories: IN WORLD
The Hong Kong Monetary Authority (HKMA) will begin accepting applications for licensing stablecoin issuers from August 1. The application period will last until September 30, 2025. At the same time, the regulator has approved strict rules for verifying the identity of all users holding licensed stablecoins in Hong Kong.
In accordance with the final recommendations on anti-money laundering and counter-terrorist financing (AML/CFT), each stablecoin owner must undergo identity verification. If the issuer cannot convincingly demonstrate the effectiveness of anti-money laundering measures, verification will become mandatory for all users.
The identity verification process may be carried out by the issuer itself, an authorised financial institution, a licensed virtual asset service provider or a trusted third party with the necessary authority.
The HKMA also warned market participants to refrain from making misleading public statements regarding licensing - no licenses have been issued to date. All information about licensed issuers will be regularly published on the official HKMA website. Owning unlicensed stablecoins in Hong Kong will be considered risky.
In addition, the HKMA published the results of the consultation and final guidance on AML compliance supervision, as well as materials clarifying the licensing process and rules for existing issuers.
The regulator noted that blockchain analytics can be an additional tool for improving compliance, but its capabilities are not yet sufficient for full risk management.
Recall that in April 2025, Hong Kong Finance Minister Paul Chan announced plans to reform the legislation governing stablecoins, which led to the current innovations.
Thus, the new regime is aimed at strengthening control and transparency in the stablecoin sector, which, according to the authorities, will increase trust in digital assets and reduce the risks of illegal activity.
