The Hong Kong Monetary Authority (HKMA) has announced the implementation of a new regulatory regime for issuers and owners of stablecoins, set to take effect on August 1, 2025. The new rules require all stablecoin owners in Hong Kong to undergo identification, while issuers must obtain the appropriate licenses.
This is reported by Finway
Strict Requirements for Identification and Licensing
The HKMA has established strict rules for verifying the identity of each user who owns a licensed stablecoin. The first wave of applications for licenses for issuers will run from August 1 to September 30, 2025. Verification of owners can be conducted by the issuers themselves, regulated financial institutions, properly regulated virtual asset providers, or reliable third parties.
“If the licensee cannot convincingly demonstrate to the HKMA the effectiveness of anti-money laundering [AML] measures, the identity of each stablecoin owner must be verified,” states the final guidance on AML/CFT.
An updated list of licensed entities will be published on the official HKMA website. Those who continue to use unlicensed stablecoins do so at their own risk.
Enhancing Transparency in the Stablecoin Market
During a technical briefing, the HKMA emphasized the importance of avoiding misinformation from market participants. Currently, no licenses have been issued, which the regulator highlighted separately.
At the same time, the HKMA released the results of consultations, final guidance on supervision, compliance with anti-money laundering (AML) requirements, as well as explanatory materials regarding the licensing process and transitional conditions for existing issuers.
The regulator also noted that blockchain analytics technologies can enhance compliance measures, but currently do not provide complete control over risks.
In April 2025, Hong Kong’s Financial Secretary Paul Chan announced plans to update the legislative framework for regulating stablecoins, which is confirmed by the recent initiatives of the HKMA.