The Hong Kong Monetary Authority (HKMA) has launched two consultation papers—on AML/CFT requirements and stablecoin issuer supervision—as it prepares for a formal licensing regime under the 2025 Stablecoins Ordinance. Stakeholders can comment until June 30, ahead of the expected August implementation (gibsondunn.com).
The drafts outline baseline standards for reserve asset backing, transaction monitoring, consumer protection, and whistleblowing. The consultation defines “specified stablecoins” based on legal issuance frameworks, and proposes AML measures such as KYC standards and real-time reporting (hkma.gov.hk). These measures align Hong Kong with global regulators seeking to mitigate illicit finance in fast-growing crypto payments.
Legislators in Hong Kong’s Legislative Council passed the Bill in May, enabling the HKMA to regulate stablecoin activity. The city now positions itself as a hub for regulated digital asset services across APAC .
Why It Matters:
- Signals major steps toward formal stablecoin frameworks in Asia.
- Provides a regulatory precedent that may guide markets like Singapore, Japan, and EU.
- Encourages institutional stablecoin issuance under legal clarity.
