Hong Kong’s Policy Statement 2.0 confirms Stablecoin Ordinance launch on Aug 1, 2025, setting a licensing regime for fiat-backed stablecoins.
New policies intended to regulate stablecoin issuers are expected further to consolidate Hong Kong’s control over the crypto market. Hong Kong has recently released Policy Statement 2.0, which is centered around regulating stablecoins and tokenizing assets. The region’s new ‘LEAP’ framework, which is based on its 2022 policy, emphasizes talent development, ecosystem expansion, real-world use cases, and legal clarity.
Hong Kong’s LEAP Framework prioritizes the use of stablecoins
Hong Kong issued the Policy Statement 2.0, which introduced the LEAP framework, as part of its vision of a crypto center. The government will be able to promote licensed stablecoins due to the new policy. The authority has requested market proposals to investigate the practical applications of stable tokens. Additionally, it is developing legislation to offer tax incentives for profits associated with blockchain technology.
Unified regulation and support for tokenized real-world assets are critical framework components. Under the supervision of the SFC, Hong Kong will establish explicit regulations for stablecoin issuers, merchants, custodians, and crypto exchanges.
It is important to note that the Stablecoin Bill was passed in May in Hong Kong, which established a licensing regime for stable token issuers that reference fiat currency. Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, proposed,
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 facilitate the transfer of real-world assets onto the blockchain through tokenized financial instruments, such as bonds. Tokenization will include renewable energy, precious metals, and gold sectors, utilizing blockchain technology to enhance market liquidity and accessibility.
Hong Kong intends to expand its digital asset sector more comprehensively. This is consistent with the region’s ultimate objective of creating a crypto center. Mr. Paul Chan, the Financial Secretary, stated, “The Policy Statement 2.0 outlines our vision for DA development and illustrates the practical application of tokenization to increase the diversification of use cases.” Additionally, he stated,
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.
The Stablecoin Ordinance was established on August 1
Intriguingly, the new policy confirms the Stablecoin Ordinance’s implementation in Hong Kong on August 1, 2025. A licensing regime for secure token issuers will be implemented on August 1 under the new framework. This signifies a new era for regulated digital assets by enabling stable asset issuers to register for licenses. The Ordinance will facilitate the institutional adoption of stable assets such as USDC by establishing transparent regulations. The declaration was as follows:
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.
Ant Group, a technology behemoth, has disclosed its intention to apply for a stable token issuance license in Hong Kong, adding a layer of intrigue to the situation. The company stated, “We intend to apply for the fiat-referenced stablecoins (FRS) issuer’s license once the process is open following the implementation of the Stablecoins Ordinance on August 1.”
