Hong Kong Tightens Stablecoin Regulation: A New Era of Crypto Ecosystem?
Jakarta, Pintu News – Hong Kong is stepping up its scrutiny of the crypto market by issuing a new policy regulating stablecoin issuers.
Through Policy Statement 2.0, Hong Kong introduced the LEAP framework that emphasizes on legal clarity, ecosystem expansion, real use cases, and talent development. This policy aims to strengthen Hong Kong’s position as a global crypto hub.
Check out the full news in this article!
LEAP Framework: Focus on Stablecoin Usage
In order to strengthen its vision as a crypto hub, Hong Kong has launched Policy Statement 2.0 which introduces the LEAP framework. The new policy allows the government to promote licensed stablecoins.
Local authorities have put forward a market proposal request to explore the practical applications of stable tokens. Currently, the government is also drafting regulations to provide tax incentives for blockchain-related profits.
Last May, Hong Kong passed the Stablecoin Bill which introduced a licensing regime for issuers of fiat-referenced stable tokens. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that the ordinance has established a risk-based, pragmatic and flexible regulatory regime.
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Yue believes that a strong and appropriate regulatory environment will support the healthy, responsible and sustainable development of stablecoins in Hong Kong as well as the broader digital asset ecosystem.
Legislation and Asset Tokenization
The Financial Services and Treasury Bureau (FSTB) together with the Hong Kong Monetary Authority will conduct a legal review to pave the way for tokenized financial instruments, such as bonds.
This will bring real assets onto the blockchain. Tokenization will be extended to sectors such as gold, precious metals, and renewable energy, leveraging blockchain to increase market accessibility and liquidity.
Paul Chan, Secretary for Finance, stated that Policy Statement 2.0 outlines a vision for the development of digital assets and demonstrates the practical use of tokenization through applications, with the aim to increase the diversification of use cases. Chan added that digital assets have great development potential with significance to fintech.
The government seeks to build a more thriving digital asset ecosystem that will integrate the real economy with social life through a prudent regulatory regime and encouragement of market innovation.
Stablecoin ordinance takes effect August 1
The new policy confirms the launch of the Stablecoin Ordinance in Hong Kong on August 1, 2025. Under this new framework, the licensing regime for stable token issuers will commence on that date.
This allows issuers of stable assets to apply for licenses, marking a new era for regulated digital assets. This ordinance will increase institutional adoption of stable assets like USDC by providing clear regulation.
Tech giant Ant Group has announced its plans to apply for a stable token issuance license in Hong Kong. The company stated that it plans to apply for a fiat-referenced stablecoin issuer license (FRS) once the process opens after the Stablecoin Ordinance comes into effect on August 1.
Conclusion
With this new policy, Hong Kong is on track to strengthen its position as an international financial center and crypto hub. Through the implementation of the LEAP framework and supporting regulations, Hong Kong is poised to lead the way in the innovation and development of a sustainable and responsible digital asset ecosystem.
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Reference
- Hong Kong Introduces New Policies for Stablecoin Issuers. Accessed on June 30, 2025
- Featured Image: Bulbapp
