- Hong Kong spotlighted the city’s new Stablecoin Ordinance at the China-ASEAN Commercial Law Forum.
- The law creates a licensing regime for stablecoin issuers.
- It complements Hong Kong’s 2025 plans to promote tokenized deposits and green bond issuance through the HKMA’s Project Ensemble.
Zhang Guojun, Hong Kong’s Deputy Secretary for Justice, highlighted the city’s new stablecoin licensing law during a speech at the China-ASEAN Commercial Law Forum.
The law was featured in a presentation on September 18 as part of Hong Kong’s efforts to support financial innovation while ensuring regulatory oversight in the digital asset sector.
Stablecoin Ordinance and Cryptocurrency Oversight
Guojun noted that Hong Kong passed the Stablecoin Ordinance in August. The legislation establishes a licensing system for stablecoin issuers, requiring compliance with financial safeguards and risk management measures.
He emphasized that the regulation is designed to balance financial innovation with investor protection. “By improving the regulatory framework for virtual asset activities and effectively managing risks, we are promoting financial innovation,” Guojun told delegates.
The new law aligns with global efforts to stabilize cryptocurrency markets, as more governments introduce licensing rules for issuers of digital assets pegged to traditional currencies.
For context, the U.S. passed the GENIUS Act in July, making it the country’s first digital asset law. The Act mandates 1-to-1 backing for stablecoins, licensing for issuers, and strict reporting requirements. Notably, other countries, including South Korea, have drawn on this law to shape their own crypto regulations.
Related: The GENIUS Act Effect: South Korea Is Now Fast-Tracking Its Own Crypto Regulations
Hong Kong Supporting Commercial Bank Tokenization
Guojun’s remarks came shortly after Chief Executive John Lee used the 2025 Policy Address to announce Hong Kong’s next step in digital finance: integrating tokenization into mainstream banking.
Under the Hong Kong Monetary Authority’s Project Ensemble, commercial banks will be encouraged to launch tokenized deposits and expand live tokenized-asset transactions.
The HKMA will use its regulatory sandbox to oversee product testing and risk management. Regular issuance of tokenized bonds, including green bonds, is also planned to enhance liquidity and broaden market access.
Related: Hong Kong to Support Commercial Bank Tokenization Initiatives in 2025 Policy Address
Link to Belt and Road Development
Notably, Guojun connected Hong Kong’s crypto regulations to the broader Belt and Road Initiative (BRI). He noted that a secure and transparent financial environment supports trade, investment, and infrastructure projects.
“The Belt and Road Initiative has promoted economic development and social progress among many countries,” he said. Guojun added that legal and financial stability are vital to the initiative’s continued success.
Hong Kong’s Legal System as a Strength
Furthermore, the Deputy Secretary highlighted Hong Kong’s common law framework as a key reason for global business confidence. It is the only bilingual (Chinese-English) common law system in China. It ranks third worldwide for overall competitiveness and first for business rules in 2025.
Hong Kong remains a leading hub for dispute resolution, ranking second globally for arbitration in 2025, according to Queen Mary University of London. Thirty-three countries recently signed a treaty in Hong Kong supporting international mediation.
Meanwhile, the city has launched an online platform to help small and medium-sized enterprises settle cross-border disputes cost-effectively.
Working with Mainland China and ASEAN
Despite its independent legal system, Hong Kong maintains close legal ties with Mainland China through nine agreements covering civil and commercial matters, including mutual recognition and enforcement of court judgments and arbitration outcomes.
These agreements provide greater predictability and stability for cross-border business between China, Hong Kong, and ASEAN economies.
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