Stablecoins are digital assets pegged to fiat currencies or other stable benchmarks to maintain consistent value. Their rapid adoption has raised concerns over financial stability, consumer protection, and compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) obligations. Hong Kong has introduced a stablecoin regulatory framework to regulate issuers and operators. This framework requires licensing, full reserve backing, consumer protection measures, and addresses cross-border issues. It includes transitional arrangements for existing operators.

Navigating Hong Kong’s Stablecoin Regulatory Framework_en