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Hong Kong’s New Play: HK$25M to Issue Stablecoins, and No, It’s Not Monopoly Money

Hong Kong’s New Play: HK$25M to Issue Stablecoins, and No, It’s Not Monopoly Money

KriptoworldKriptoworld2025/11/21 16:00
By:by kriptoworld

Hong Kong just dropped a crypto bombshell. If you want to be in the stablecoin game, you better bring a serious wallet.

The city’s latest rule? A minimum capital requirement of HK$25 million for any company daring enough to issue fiat-backed stablecoins.

HK$25 million is not exactly pocket change but enough to keep things legit and, importantly, ensure these digital tokens can be cashed out 1:1 with actual, old-school money.

Institutional framework to supervise virtual assets

Why all the fuss? Regulators want a clear, ironclad redemption mechanism, that’s why.

The promise is simple, holders can swap their stablecoins for real fiat currency swiftly and without hair-pulling delays.

This move is under Hong Kong Monetary Authority’s spanking-new stablecoin licensing framework, which became law earlier this year.

Lui Chi-hung , one of the city’s crypto sherpas and part of the Stablecoin Review Tribunal, summed it up, saying that Hong Kong isn’t just tweaking rules here, but it’s setting a solid institutional framework to supervise virtual assets.

The emphasis? Stablecoins backed only by fiat, fully supported by liquid, low-risk assets, not some flaky promise of “trust us.”

Independent audits

Issuers must park their raised fiat funds in highly liquid investments so that even when the crypto market turns into a rollercoaster from hell, these stablecoins don’t lose their footing.

Plus, independent audits by firms along the lines of Deloitte keep everyone honest, confirming asset quality and making sure what’s promised to the public matches reality.

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Hong Kong as a crypto hub

Globally, Hong Kong steps into the ring alongside big players.

The European Union’s Markets in Crypto-Assets framework took effect mid-2024, setting a similarly tough tone.

Across the pond, the U.S. passed the GENIUS Act this year to finally wrestle stablecoin oversight into officialdom.

Hong Kong’s moves set it squarely on this global frontier, aiming to attract international institutions that want the safety net of regulatory clarity without suffocating innovation.

So, Hong Kong is carving out a reputation as a crypto hub with rules that blend caution with opportunity, a place where stablecoins need “real money” muscle behind their shiny digital masks.

Investors can sleep a little easier, and the city might just become a magnet for international stablecoin ventures looking for a clear, dependable home turf.

Hong Kong’s New Play: HK$25M to Issue Stablecoins, and No, It’s Not Monopoly Money image 0 Hong Kong’s New Play: HK$25M to Issue Stablecoins, and No, It’s Not Monopoly Money image 1
Written by András Mészáros
Cryptocurrency and Web3 expert, founder of Kriptoworld
LinkedIn | X (Twitter) | More articles

With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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