The regulatory legislative path for stablecoins in Hong Kong: from the policy launch in 2022 to full implementation in 2025.

The licensing system is officially implemented, and Hong Kong's "Stablecoin Bill" is officially passed (2025)

May 21, 2025 - The Hong Kong Legislative Council passed the "Stablecoin Bill" in the second reading with a majority vote, and it was approved in the third reading. According to the legislative procedures of the Hong Kong Legislative Council, a bill must go through three readings to become law. Thus, the Hong Kong "Stablecoin Bill" has officially been passed.

March 2025 - The Hong Kong Legislative Council reviews and submits the "Stablecoin Regulation Bill" for a first reading, marking the beginning of Hong Kong's establishment of the world's strictest stablecoin regulatory framework.

February 2025 - Hong Kong releases the "a-s-p-i-re" regulatory roadmap, adding a licensing system for over-the-counter trading platform (otc) and custodians, requiring exchanges to implement cold wallet storage and real-time trading monitoring.

Legislative Advancement Stage (2024)

December 18, 2024: The Hong Kong government submitted the "Stablecoin Bill" to the Hong Kong Legislative Council for a first reading.

December 6, 2024: The Hong Kong government published the "Stablecoin Bill" in the Gazette.

July 2024: The Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau jointly released the "Legislative Proposal Consultation Summary on Implementing a Regulatory System for Stablecoin Issuers in Hong Kong," summarizing public consultation feedback and proposing specific regulatory measures.

March 12, 2024: The Hong Kong Monetary Authority officially launched a regulatory sandbox for the Hong Kong dollar stablecoin, providing an effective channel for the Monetary Authority to exchange views on the proposed regulatory framework with the industry.

January 2024: The Hong Kong Monetary Authority released a consultation paper proposing regulatory measures for stablecoins and for the first time clarified the definition of fiat-referenced stablecoins (FRS).

Public Consultation and Framework Development (2023)

27 December 2023: The HKMA publishes the Consultation Conclusions on Cryptoassets and Stablecoins to prioritize the regulation of fiat-pegged stablecoins, and issuers need to be licensed by the HKMA. Reserve assets are required to be fully supported and segregated in custody, and regularly audited and disclosed. It is planned to enact legislation in phases to give priority to the regulation of "Hong Kong dollar stablecoins".

December 2023: The Hong Kong Monetary Authority released the "Regulatory Framework for Stablecoin Issuers Legislative Proposal," planning to include fiat-backed stablecoins under regulation and requiring issuers to obtain approval from the Monetary Authority.

June 1, 2023: The Hong Kong Monetary Authority began implementing a new licensing regime for Virtual Asset Service Providers (VASP), requiring all trading operations in Hong Kong to comply with anti-money laundering (AML) and customer asset protection rules, and to undergo stringent scrutiny by the Hong Kong Securities and Futures Commission.

February 20, 2023: The Hong Kong Securities and Futures Commission (SFC) announced its readiness to consult on proposed regulations applicable to operators of virtual asset trading platforms. This includes allowing retail investors to trade digital tokens such as Bitcoin and Ethereum, marking an important step for Hong Kong in its goal to become an Asian crypto hub.

January 31, 2023: The Hong Kong Monetary Authority released a "Discussion Paper on Conclusions Regarding Crypto Assets and Stablecoins," outlining the proposed regulatory framework parameters based on feedback from the previous discussion document, prioritizing the regulation of crypto stablecoins, and providing detailed information on regulatory activities, implementation timelines, licensing, regulatory principles, and more.

Policy initiation phase (2022)

December 2022: Hong Kong's Legislative Council passed the Anti-Money Laundering and Counter-Terrorist Financing ( Amendment ) Ordinance 2022, which regulates virtual asset service providers (VASPs) and requires exchanges to apply for a license from the Securities and Futures Commission (SFC).

Event on October 31, 2022: The Hong Kong government released the "Policy Declaration on the Development of Virtual Assets," which explicitly includes stablecoins within the regulatory framework for the first time, emphasizing the need to establish a regulatory system that matches the risks to ensure financial stability and protect consumer rights.

July 2022: The Hong Kong Monetary Authority published a consultation summary on the discussion paper regarding crypto assets and stablecoins, summarizing the responses to the "Consultation Paper on the Regulation of Cryptocurrencies and Stablecoins" and outlining some fundamental principles and directions for the regulation of stablecoins.

January 12, 2022: The Hong Kong Monetary Authority (HKMA) released the "Consultation Paper on the Regulation of Cryptocurrencies and Stablecoins," inviting market participants and the public to provide feedback.