Online retail giant JD.com prepares for Hong Kong's impending stablecoin regulations by registering digital assets Jcoin and Joycoin.
Hong Kong Establishes Strict Regulations for Stablecoin Issuance
Hong Kong is set to become a regulated digital asset hub, as the Hong Kong Monetary Authority (HKMA) announced new regulations for stablecoin issuers, effective from August 1, 2025. These regulations aim to ensure financial safeguards, robust governance, operational transparency, and anti-money laundering (AML) controls.
Under the new regulations, issuers of fiat-referenced stablecoins (FRS) must obtain a license from the HKMA. This applies if the stablecoin is issued in Hong Kong or actively marketed there, or purports to reference the Hong Kong dollar. Issuers must be companies incorporated in Hong Kong, except for Hong Kong-licensed banks which can be incorporated elsewhere.
To obtain a license, issuers must demonstrate a viable use case and a sustainable business plan. They must also maintain a minimum paid-up capital of HK$25 million, and have adequate financial resources and liquid assets to cover obligations, including for an orderly exit. These funds must be dedicated strictly to the licensee's activities, not for related parties.
Stablecoins must be backed by high-quality, highly liquid reserves to ensure redemption capability within one business day. Issuers must maintain a physical presence in Hong Kong. They must also conduct customer due diligence and implement automated transaction monitoring to screen wallets for AML and counterterrorism financing compliance.
Existing stablecoin issuers have a six-month transitional period after August 1, 2025, to apply for temporary licenses with a credible pathway to full compliance. Formal license applications must be submitted within three months, or they risk having to wind down operations within four months.
Major companies, including Standard Chartered Hong Kong, Animoca Brands, RD InnoTech, and Hong Kong Telecommunications, are reportedly preparing Hong Kong stablecoin applications. Chinese e-commerce giant JD.com, through its fintech subsidiary JD Coinlink Technology, is also planning to issue a Hong Kong dollar-backed digital asset called "Jingdong stablecoin" on public blockchain infrastructure.
JD Coinlink Technology is participating in the HKMA's stablecoin sandbox program, launched in March 2024. The company's stablecoin will maintain 1:1 backing with HKD reserves and serve both business and retail users. The HKMA's regulations require guaranteed 1:1 redemption within one business day using readily accessible reserve assets.
The HKMA's comprehensive stablecoin regulations were published on July 29, 2025. As of the date provided, there are zero licensed stablecoin issuers in the HKMA's official register, but initial approvals are expected following August 1 enforcement. The HKMA's regulations require comprehensive AML and counter-terrorism financing procedures for all user transactions.
Chinese technology companies view Hong Kong's regulatory framework as an opportunity for compliant digital asset expansion into Asian markets. The HKMA's strict regulations position Hong Kong as a leader in digital asset regulation, aiming to foster innovation while maintaining financial stability and security.
Stablecoin issuers in Hong Kong, as mandated by the new regulations effective from August 1, 2025, must demonstrate a viable use case and a sustainable business plan to obtain a license and maintain a physical presence in the city. The issuers must also operate on blockchain technology, and their stablecoins, which are fiat-referenced and can refer to the Hong Kong dollar, must be backed by high-quality, highly liquid reserves to ensure redemption capability within one business day. Additionally, stablecoin issuers must implement comprehensive Anti-Money Laundering (AML) and counter-terrorism financing procedures for all user transactions, focusing on customer due diligence and automated transaction monitoring.
