Hong Kong's Stablecoin Ordinance will take effect on August 1, 2025

As a global financial center, Hong Kong is also actively incorporating stablecoins into its regulatory system. As early as May 21, Hong Kong passed the Stablecoin Bill. On June 6, the Hong Kong government issued the Stablecoin Ordinance (Effective Date) Notice, proposing that August 1 this year will be the date for the implementation of the Stablecoin Ordinance (Chapter 656) (the Ordinance).

Hong KongThe Secretary for Financial Services and the Treasury, Paul Chan, once said that the licensing system will provide clear regulatory guidance for stablecoin activities, help Hong Kong explore financial innovation under the premise of compliance, and consolidate its position as an international financial center. As the effective date approaches, relevant market players will gradually implement the requirements of the regulations, and Hong Kong's stablecoin regulatory system will also enter the substantive operation stage.

The Stablecoin Ordinance not only defines the scope of stablecoins, but also clearly states that the scope of supervision includes the issuance of stablecoins anchored to the Hong Kong dollar, and the conduct of stablecoin-related business to Hong Kong residents. The Stablecoin Ordinance implements a licensing system for stablecoin business, and relevant companies must meet certain conditions to obtain a license to engage in stablecoin business. At the company operation level, the policy clearly requires the establishment of relevant positions, and companies will face penalties if they violate relevant regulations.

Before the introduction of the Stablecoin Ordinance, the Hong Kong Monetary Authority launched the Stablecoin Sandbox Program in 2024. The so-called sandbox is a security mechanism in the field of computer security that provides an isolated environment for program operation, and technical testing can be carried out in a controllable environment. In the field of financial technology, regulators have promoted the regulatory sandbox system, and authorized companies carry out technology and product innovation in a controllable environment.

In July 2024, several companies entered the Hong Kong Stablecoin Sandbox Program, including: JD CoinChain Technology (Hong Kong) Co., Ltd., Yuanbi Innovation Technology Co., Ltd., Standard Chartered Bank (Hong Kong) Co., Ltd., Anni Group Co., Ltd. and Hong Kong Telecommunications (HKT) Limited.

These companies are divided into three groups, among which Standard Chartered Bank, Anni Group and Hong Kong Telecommunications jointly developed the stablecoin HKDG anchored to the Hong Kong dollar, Yuanbi Innovation Technology developed the stablecoin HKDR, and JD CoinChain Technology developed the stablecoin JD-HKD.

JD CoinChain Technology announced the latest progress of JD Stablecoin, which has entered the second phase of sandbox testing. In this phase, JD CoinChain Technology will focus on mobile and computer products, with scenarios including retail payment, cross-border payment and investment transactions.

With the Hong Kong Stablecoin Ordinance coming into effect on August 1, some A-share listed companies that are eligible to participate in Hong Kong's stablecoin business are expected to expand innovative businesses.

Do you remember the personal RMB business pilot launched in Hong Kong in 2003?

It was that pilot that laid the institutional foundation for RMB cross-border trade settlement in 2009. Today, Hong Kong is once again at the watershed of RMB internationalization. CNH stablecoin may become the next breakthrough in digital finance, opening the 2.0 era of the "Hong Kong experience".

The core experience of the successful pilot that year was the "regulatory closed loop + market-oriented transmission" mechanism: the mainland used Bank of China (Hong Kong) as a clearing hub to transmit regulatory requirements to the Hong Kong banking system in the form of commercial agreements, which both respected market autonomy and ensured system security. This hierarchical regulatory framework may provide a realistic and feasible reference for today's stablecoin experiments.

Today, the Stablecoin Ordinance reserves policy space for the inclusion of non-Hong Kong dollar legal currencies such as the RMB in anchor currencies through flexible clauses, but the specific implementation requires case-by-case approval by the HKMA. Currently, only the issuance of Hong Kong dollar stablecoins is subject to mandatory supervision. Hong Kong is exploring the integration of the RTGS (real-time gross payment) system and on-chain clearing. Its "regulatory sandbox + hierarchical openness" model consolidates the innovative advantages of digital currency through controllable trial and error.

If the CNH stablecoin is regarded as an institutional incision for the internationalization of the RMB, it may not only supplement the CIPS (Cross-Border Payment System for RMB), but also build a RMB channel independent of the SWIFT (International Funds Clearing System) system. In the technological race of the global payment network, Hong Kong is trying to build a digital "outlet" for the RMB.