Hong Kong sets high bar for stablecoin issuers

Hong Kong licensed exchange OSL saw its share price surge 18% to HK$14.6 on June 25, hitting a one-year high. The approval of a virtual asset license for Chinese brokerage Guotai Junan International boosted the exchange’s share price.

Guotai became the first Chinese brokerage in the region to secure approval for virtual asset trading services, and its share price also jumped more than 200% after the announcement. HashKey, the token to the licensed exchange in Hong Kong, saw its token HSK climb over 50% today.

Guotai Junan International upgrades its Type 1 license

国泰君安获批牌照升级为可提供交易虚拟资产服务，这个最利好的应该是耀才证券，
耀才证券被蚂蚁收购了，
最有想象力的事情就是支付宝可以通过耀才证券的牌照，在支付宝交易btc/eth. pic.twitter.com/NRvAV0j3RE

— 川沐｜Trumoo🐮 (@xiaomucrypto) June 25, 2025

Guotai Haitong Group’s subsidiary, Guotai Junan Securities, received an upgraded Type 1 license on Wednesday from the Hong Kong Securities and Futures Commission to offer advice based on the provisions of virtual asset trading services. The license also helps the company offer access to Bitcoin, Ethereum, stablecoins, and other virtual assets through approved trading platforms.

The excitement of Guotai Junan’s upgraded license was reflected in exchanges’ share prices across Hong Kong, including OSL, a key player with SFC approval, which saw its share price jump 18% to hit HK 14.6, a one-year high.

Hong Kong has been trying to standardize its crypto regulations, beginning in June 2023 when the SAR implemented its virtual asset licensing regulations. The rules required all service providers to obtain an SFC license under the Anti-Money Laundering and Counter-Terrorism Financing Ordinance, aimed at combating money laundering and terrorist financing. The special administrative region has also previously enhanced regulations for stablecoins and tokenization.

Hong Kong has also seen an increasing number of institutions entering the emerging sector, including virtual asset exchanges, Web 3.0 companies, and brokerages. At the time of publication, roughly 40 brokerage firms upgraded their licenses to offer virtual asset trading services in the country, including a Singapore-based Tiger Brokers unit, a Hong Kong-based Futu Securities subsidiary, and Thousand Whales Technology.

Hong Kong sets high bar for stablecoin issuers

Hong Kong’s stablecoin regulation is now law.
Starting Aug 1, 2025, a license from HKMA is required to issue any fiat-pegged stablecoin.

Pegged to HKD or any fiat? You're regulated—no matter where you're based.#Stablecoins #CryptoRegulation #Web3Compliance pic.twitter.com/7ieEp2V7FS

— Shyft Network (@shyftnetwork) June 23, 2025

In May 2025, the Hong Kong Monetary Authority passed the Stablecoin Ordinance, establishing a licensing regime for fiat-referenced stablecoin issuers in Hong Kong.

Chief Executive at HKMA Eddie Yue revealed that the Ordinance is expected to come into effect on 1 August 2025, after which the HKMA will begin accepting license applications. Currently, the agency is consulting on the detailed implementation guidelines for early adoption.

“The Ordinance marks a key step in enhancing the regulatory framework for digital asset activities, safeguarding monetary and financial stability, as well as strengthening Hong Kong’s status as an international financial centre.”

–Eddie Yue, Chief Executive at Hong Kong Monetary Authority.

Yue added that HKMA has also been actively participating in the work of international organizations, including the Financial Stability Board (FSB) under the G20, which published the “Global Regulatory Framework for Crypto-Asset Activities” in 2023. He said the framework provides a set of guiding international standards for the regulation of stablecoins, on which Hong Kong’s regulatory regime is largely based.

The HKMA noted that the Stablecoins Ordinance adopts the principle of ‘same activity, same risk, same regulation,’ which ensures alignment with international standards while adapting to local circumstances. The entity added that it provides proper safeguards against financial stability risks and money laundering, promotes investor protection, and lays a solid foundation for the industry’s sustainable development.

Yue disclosed that HKMA plans to set a high bar for licensing while considering the need for user protection, market capacity, and long-term development. The agency said it expects only a handful of licenses to be granted in the first phase.

The HKMA revealed that participation in its Stablecoin Issuer Sandbox launched early last year is not a prerequisite for receiving a license, nor is participation a guarantee for a license. The institution highlighted that it will be cautious when considering license applications.

According to Yue, the question of how stablecoins will operate alongside CBDCs and bank-issued tokens remains unresolved. HKMA also hopes to promote the responsible and sustainable development of digital assets in Hong Kong, to consolidate the city’s role as an international financial center.