Hong Kong’s Stablecoin Ordinance to Take Effect August 1, 2025 — Ahead of U.S. GENIUS Act  

TradingKey – Hong Kong’s stablecoin legislation will take effect ahead of the U.S., officially launching on August 1.  

On Friday, June 6, Hong Kong’s government announced that the "Stablecoin Ordinance" will take effect in two months, starting August 1, 2025.  Under the new law, only licensed entities will be allowed to issue and distribute stablecoins within Hong Kong.  

Secretary for Financial Services and the Treasury Christopher Hui stated, "Once the ordinance takes effect, the licensing framework will provide appropriate regulatory oversight for stablecoin activities — marking a milestone in Hong Kong’s sustainable development of stablecoins and digital assets."

The Stablecoin Ordinance was proposed last year and officially became law on May 30, 2025, beating the U.S. GENIUS Act to implementation.  

The GENIUS Act, a U.S. stablecoin-focused regulation, recently passed a key procedural vote and is now undergoing revisions, with the Senate potentially voting on it as soon as June 9.  

Although stablecoins are classified as cryptocurrencies, they are backed by fiat currency or major assets such as government bonds — a key reason why countries and regions are racing to develop their own frameworks.  

As stablecoins transition into regulated financial instruments, global competition for market dominance is expected to intensify.