RD Technologies has welcomed the passage of Hong Kong’s new Stablecoins Bill, describing it as a crucial step in strengthening its position as a global hub for digital assets.
📢 RD Technologies warmly congratulates the passage of the Stablecoins Bill in its third reading — ushering in a new era of Web3 in Hong Kong!
Today, Hong Kong has taken a major step forward in developing Web3 with the Legislative Council’s official third reading approval of the… pic.twitter.com/FFyY6mH8Xl
— RD Technologies (@RD_Technologies) May 21, 2025
The legislation, passed by the Legislative Council on May 21, 2025, establishes a comprehensive licensing regime for fiat-referenced stablecoin (FRS) issuers. This marks a significant move toward regulatory clarity, aiming to balance innovation with financial stability in Hong Kong’s rapidly evolving fintech sector.
Under the Stablecoins Ordinance, any entity issuing FRS in Hong Kong, or those pegged to the Hong Kong dollar, must obtain a license from the Hong Kong Monetary Authority (HKMA). Licensees must meet a high regulatory bar, including stringent reserve asset management, effective stabilization mechanisms, and the ability to redeem stablecoins at par value under reasonable conditions. The law also mandates compliance with anti-money laundering (AML), counter-terrorist financing measures, and robust risk management, auditing, and disclosure obligations.
RD Technologies, a Hong Kong-based fintech firm specializing in blockchain-driven payment solutions, has been an early mover. Its subsidiary, RD InnoTech Limited, was among the first batch of companies admitted into the HKMA’s stablecoin issuer sandbox in July 2024. The company views this as recognizing its commitment to regulatory compliance and innovation.
CEO Rita Liu welcomed the new ordinance, stating,
“The passage of this bill brings welcome clarity and structure to Hong Kong’s digital asset ecosystem. It lays a solid foundation for secure, transparent, and sustainable growth in virtual finance. We’re proud to be part of this transformation and ready to lead with compliant, innovative solutions for cross-border payments, asset tokenization, and virtual asset trading.”
The ordinance is expected to take effect later this year, with transitional arrangements allowing time for firms to adapt. RD Technologies said it will continue working closely with regulators to help shape a stable and forward-looking digital economy.
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