Hong Kong encouraged to prioritize development of Renminbi-tied digital currencies
In the world of digital finance, Hong Kong is making a bold move. As of August 1, 2025, the city has officially implemented a comprehensive regulatory framework for fiat-referenced stablecoins, including those pegged to the Chinese RMB (renminbi), following a proposal by Yao Zhisheng, a member of the Chinese People's Political Consultative Conference.
The new Stablecoin Ordinance requires stablecoin issuers to be locally incorporated, maintain a 1:1 fiat reserve, and comply strictly with anti-money laundering (AML) and counter-terrorism financing (CFT) rules to obtain a license from the Hong Kong Monetary Authority (HKMA). This regulatory environment is designed to foster innovation while protecting investors against risks of fraud and volatility.
Hong Kong's move aligns with previous initiatives like Bond Connect, which significantly increased cross-border capital flows. By positioning itself as a hub for cross-border payments and the issuance of yuan-based stablecoins in the offshore market, Hong Kong aims to leverage its significant offshore RMB liquidity pool.
The HKMA is currently accepting applications for stablecoin issuer licenses through the end of September 2025, with industry players showing strong interest. Major banks and technology firms, such as Anchorpoint Financial—a joint venture involving Standard Chartered Bank, Animoca Brands, and Hong Kong Telecom—are planning to apply for licenses and advance licensed stablecoin businesses in Hong Kong. However, only a limited number of licenses will be granted initially.
Sophia Panel, a data-driven, strategic thinker with strong storytelling instincts, is helping readers understand the complexities of this development. As a cryptocurrency journalist with over 10 years of experience, she reports on token listings, stablecoins, exchanges, and market trends in plain, clear language. Her work, which includes leading SEO campaigns that boosted traffic by 300% for major Web3 platforms and publishing over 500 blockchain-focused articles, bridges the gap between Web2 audiences and the Web3 world.
In a time when the financial landscape is constantly evolving, Sophia Panel's insights provide valuable perspectives. As she continues to educate underserved communities about blockchain potential and collaborate with industry leaders, her impact on the digital finance sector is undeniable.
References:
- Hong Kong's Stablecoin Ordinance
- HKMA's Guidance on Stablecoins
- Hong Kong's Position as a Hub for Yuan Stablecoins
- Anchorpoint Financial's Stablecoin Plans
- In the evolving landscape of digital finance, Sophia Panel, a seasoned cryptocurrency journalist, is shedding light on the complexities of Hong Kong's recent regulatory moves, which include the implementation of a new Stablecoin Ordinance for cryptocurrency and crypto mining, designed to foster innovation while ensuring investor protection.
- Under the new framework, stablecoin issuers, including those dealing with the Chinese RMB, are required to be locally incorporated and maintain a 1:1 fiat reserve, while strictly adhering to anti-money laundering and counter-terrorism financing regulations to obtain a license from the Hong Kong Monetary Authority (HKMA).
- This regulatory environment aims to position Hong Kong as a hub for cross-border payments and the issuance of yuan-based stablecoins in the offshore market, potentially leveraging the city's significant offshore RMB liquidity pool in the realms of technology and finance.
