Hong Kong’s crypto-related stocks experienced a significant rally on Tuesday, reflecting growing investor confidence in the city’s upcoming stablecoin licensing framework, set to take effect on August 1, 2025.
This regulatory milestone is expected to strengthen Hong Kong’s position as a leading global crypto hub.
Shares of Guotai Junan International, a Chinese brokerage listed on the Hong Kong Stock Exchange, surged 16% by midday after the firm recently secured regulatory approval to offer cryptocurrency trading services locally. Similarly, OSL, a licensed crypto exchange, saw its shares climb 12.2%, while Dmall Inc., a Chinese retail digitalization company preparing to apply for a stablecoin license, rose 8.9%.
The Hong Kong Monetary Authority (HKMA) will require stablecoin issuers to obtain licenses under the new regime, which aims to regulate fiat-backed stablecoins and ensure robust reserve mechanisms with high-quality, liquid assets. This comes after the Legislative Council passed the stablecoin bill in May 2025, marking a significant step in formalizing oversight of crypto assets.
The licensing framework is designed to address real-world economic challenges, particularly enhancing cross-border payments involving local currencies. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasized that stablecoins could reduce transaction costs and facilitate smoother international trade, especially where traditional financial systems face limitations.
The stablecoin initiative has also sparked interest in offshore yuan-pegged stablecoins, with major Chinese tech firms, such as JD.com and Ant Group, lobbying for regulatory approval to issue such tokens, highlighting Hong Kong’s strategic role in the offshore yuan market.
Hong Kong’s proactive stance contrasts with mainland China’s continued ban on crypto trading and mining, positioning the city as a welcoming environment for crypto innovation.
The HKMA’s stablecoin sandbox has attracted prominent participants, including Standard Chartered Bank and Animoca Brands, underscoring the city’s commitment to fostering a regulated yet dynamic crypto ecosystem.
This regulatory clarity and market enthusiasm are expected to accelerate the adoption of stablecoins in retail, cross-border trade, and peer-to-peer payments, heralding a new chapter for digital finance in Hong Kong and beyond.
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