The Hong Kong Legislative Council passed the Stablecoin Ordinance on May 21, and it will come into effect on August 1, 2025. Now, the Hong Kong Monetary Authority (HKMA) will begin accepting license applications. However, it has been speculated that the licenses are relatively short, contrary to the growing demand. More than 40 companies are preparing to apply.
Institutions from all over the world are welcome to apply for the license, making the process flexible and intensifying the competition. More than 40 companies have submitted their application, on top of a dozen more companies intending to apply.
The Hong Kong Monetary Authority (HKMA) will start accepting stablecoin licenses from August 1, allowing investors to buy and sell virtual assets on a licensed virtual asset trading platform. The move aims to regulate fiat-referenced stablecoins and promote digital asset activities in the nation.
“The passage of the Stablecoins Ordinance is a pivotal step. From 1 August 2025, all issuers of fiat-referenced stablecoins must be licensed by the HKMA and meet rigorous reserve, redemption, and AML standards.”— Hong Kong Monetary Authority (HKMA)
The HKMA has set a bunch of compulsory requirements for stablecoin licenses, including—
These are some of the measures mandatory for the applicant to follow. As the competition is growing for digital assets, Hong Kong is uplifting its standards while potentially positioning itself as a global crypto hub. Looking at these new regulations, it appears that Hong Kong is aligning its standards with global agencies.
Yes, Singapore is widely considered a highly crypto-friendly country in 2025. It boasts a robust, evolving regulatory framework, no capital gains tax on personal crypto investments, and a thriving blockchain ecosystem. The Monetary Authority of Singapore (MAS) actively supports crypto innovation while prioritizing consumer protection and financial stability.
For individual investors, Singapore imposes no capital gains tax on profits from selling or trading cryptocurrencies. However, if you trade crypto as a business or receive it as payment for goods/services, it’s subject to standard income tax. Generally, buying/selling crypto is exempt from Goods and Services Tax (GST), but an 8% GST applies to transaction fees.
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