Hong Kong Stablecoin Regulations to Strengthen Market Oversight

The Hong Kong Monetary Authority (HKMA) is preparing to introduce Hong Kong stablecoin regulations to address fraud and market instability tied to unregulated digital asset issuance. Emil Chan, co-chairman of the Hong Kong Digital Finance Association, confirmed that the HKMA will release a summary of its licensing framework next week.

The guidelines will define compliance standards for stablecoin issuers and enhance engagement between regulators and market operators. Chan noted that many stablecoin issuers in Hong Kong are non-financial entities, raising compliance and quality concerns. Clear regulation, he argued, is essential to prevent misuse, reduce reputational risks, and build trust as interest in regulated stablecoins grows.