Hong Kong’s Stubcoin Act will come into effect on August 1st

Treasury Secretary Chang said a second policy statement on Hong Kong’s digital assets strategy will be issued later this month. It integrates financial services with innovation and focuses on expanding real-world application scenarios for digital assets.

At the 2025 Kaisin Summer Summit, Chang confirmed that the city has already launched a digital asset trading platform and a licensing system for stubcoin. Hong Kong was also pushing forward with new regulations for custody and OTC services. Chan previously said that the Securities and Futures Commission (SFC) is reviewing virtual asset derivatives for professional investors, starting with BTC and ETH perpetual.

Hong Kong issued its first policy statement on the development of digital assets in October 2022, covering the regulation of crypto exchanges and approval of the Exchange Trade Fund (ETF). Chang believes that the future of Hong Kong’s digital technology growth will be driven by blockchain and Web3 technology.

The Treasury Secretary also said laws have been set to ensure it is settled for regular passages. He added that he is working hard with colleagues from the Ministry of Financial Services and Treasury and the Hong Kong Monetary Authority (HKMA) to win the relevant licensing scheme this year.

Chan says it’s essential to explore digital finance in the real economy

Chang said financial innovation is where Hong Kong needs to win to become a financial powerhouse. He added that it is essential to exploring ways to better support real economic development, including financial and cross-border financial services.

Chang explained that the convergence of Web3 and AI is unlocking the new frontier of finance. Decentralized AI algorithms enhanced credit ratings, audited smart contracts that were audited more accurately, and provided personalized investment strategies. Beyond finance, technology-based supply chains have transformed healthcare data management and created new immersive gaming experiences. Web3 and AI were transforming business and public services, driving innovation and efficiency at every turn.

“We are publishing a second policy statement on virtual asset development, covering ways to leverage Web3 to quickly track traditional financial services development, strengthen the real economy, and enhance the application of digital asset technologies.”

–Paul ChanHong Kong’s Treasury Secretary

The Treasury Secretary also said the city provided a stable environment for investors amid the complex geopolitical landscape. He added that the HK government is actively attracting more established mainland companies to list them in SAR (special administrative zones) to support their overseas expansion plans.

Hong Kong’s Stubcoin Act will come into effect on August 1st

Jack Jack Ma’s Ant International pursues Stablecoin licenses in Hong Kong and Singapore!

Hong Hong Kong’s new Stablecoin regulations will come into effect in August this year.

asiaThis move will strengthen blockchain infrastructure for Asian cross-border payments and financial innovation. pic.twitter.com/igfmvhffj5

– Aivora (@aivoraex) June 12, 2025

government announcement Earlier this month, Hong Kong’s new Stubcoin Act came into effect on August 1, paving the way for regulated issuance, confirming that cities continue to take a cautious stance on cryptography ahead of the US and mainland China. The city’s finance and technology department had placed themselves in the traditional financial mode of use stable.

The HK Legislative Council passed a bill regulating stubcoin on May 21, but the government did not announce when it would be effective until the June 6 statement. Daniel Tse, managing director of Futu Securities International, said investors are increasingly interested in Stablecoins, adding that his company’s platform saw a surge in Stablecoin-related investments.

Daniel Tse also said his company views it as a promising path for growth and innovation in the securities industry. He added that clients can exchange tokenized intellectual property and paintings in the future, creating new opportunities for investors and brokers.

Wu Tianhua, founder and CEO of Tiger Brokers, revealed that his company is very optimistic about the growing demand for connections between Web2 and Web3, and is urging the development of a one-stop platform. He added that Tiger Brokers has expanded its deposit options to include Bitcoin and Tether USDT. Securities firms believe that supporting Stablecoin deposits will improve market capital efficiency and flexibility. They also argued that Stubcoin will help reduce forex in cross-border trading while improving user experience and fund mobility.