Hong Kong Introduces New Policies for Stablecoin Issuers

Hong Kong is set to tighten its grip on the crypto market with new policies aimed at regulating stablecoin issuers. In the latest development, Hong Kong released Policy Statement 2.0, with stablecoin regulation and asset tokenization at the core. Building on its 2022 policy, the region’s new ‘LEAP’ framework prioritizes legal clarity, ecosystem expansion, real-world use cases, and talent development.

Hong Kong’s LEAP Framework Prioritizes Stablecoin Use

As part of its vision of a crypto hub, Hong Kong issued the Policy Statement 2.0, introducing the LEAP framework. The new policy will enable the government to promote licensed stablecoins. The authority has issued a call for market proposals to explore practical applications of stable tokens. It is also drafting legislation to provide tax incentives for blockchain-related profits.

Significantly, a core component of the framework is unified regulation and support for tokenized real-world assets. Hong Kong will introduce clear rules for crypto exchanges, stablecoin issuers, dealers, and custodians under the oversight of the SFC.

Notably, Hong Kong passed the Stablecoin Bill in May, introducing a licensing regime for fiat-referenced stable token issuers. Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, posited,

The Ordinance has established a risk-based, pragmatic, and flexible regulatory regime. We believe that a robust and fit-for-purpose regulatory environment would provide favourable conditions to support the healthy, responsible, and sustainable development of Hong Kong’s stablecoin and the broader digital asset ecosystem.

The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority will conduct a legal review to pave the way for tokenized financial instruments, such as bonds, bringing real-world assets onto the blockchain. Tokenization will be extended to sectors like gold, precious metals, and renewable energy, leveraging blockchain for greater market accessibility and liquidity.

To a broader extent, Hong Kong intends to boost its digital asset space. This aligns with the region’s ultimate aim of establishing a crypto hub. Financial Secretary Paul Chan stated, “The Policy Statement 2.0 sets out our vision for DA development and showcases the practical use of tokenisation through application, with a view to boosting the diversification of use cases.” He added,

Digital assets hold great development potential with significance to fintech…We strive to build a more flourishing DA ecosystem which will integrate the real economy with social life through a prudent regulatory regime and encouragement to market innovation, such that it will bring benefits to both the economy and society while consolidating Hong Kong’s leading position as an international financial centre.

Stablecoin Ordinance Set on August 1

Interestingly, the new policy confirms Hong Kong’s launch of the Stablecoin Ordinance on August 1, 2025. Under the new framework, a licensing regime for stable token issuers will kick in on August 1. This allows stable asset issuers to apply for licenses, signaling a new era for regulated digital assets. The Ordinance will boost institutional adoption of stable assets like USDC by providing clear regulations. The statement read,

The implementation of the licensing regime for stablecoin issuers on August 1 will facilitate the development of real-world use cases…To demonstrate support and to take the lead, the Government welcomes proposals from market participants on how the Government may test the usage of licensed stablecoins.

Adding more intrigue to the scenario, tech giant Ant Group has announced its plans to apply for a stable token issuance license in Hong Kong. The firm cited, “We plan to apply for the fiat-referenced stablecoins (FRS) issuer’s license once the process is open after the Stablecoins Ordinance takes effect on August 1.