With Hong Kong’s Stablecoin Law now in place, a look back at Episode 61 of Regulatory Ramblings offers insights into what it means.

 

Guest Ben Hammond (Office Managing Partner, Hong Kong at Ashurst) breaks down how the law:

 

• Completes Hong Kong’s regulatory framework for fiat-backed stablecoins 

• Establishes licensing to ensure legitimacy and investor protection 

• Requires offshore issuers to maintain a local presence 

• Supports institutional use cases like delivery-vs-payment infrastructure 

 

As the HKMA confirms, only licensed issuers may operate or advertise to retail investors, and stablecoins must be fully backed, redeemable, and compliant with AML/CFT requirements. 

 

Ben Hammond puts it clearly: “It completes the patchwork of regulation... creating legitimacy and a platform on which to build.”