Hong Kong is rewriting the stablecoin game!

August 21, 2025

Hello everyone! Today, I would like to discuss a topic that is both full of opportunities and carries significant responsibilities: stablecoins. The Hong Kong Stablecoin Ordinance came into effect in August 2025. This legislation, together with the draft regulatory guidelines for licensed stablecoin issuers, provides a clear and comprehensive framework for the issuance and operation of fiat-pegged stablecoins. What we will discuss today is how to find a truly feasible and implementable solution in the context of continuously increasing compliance requirements. Hong Kong’s requirements are stricter than ever before. The regulations explicitly stipulate that stablecoin issuers must ensure “real-name traceability,” with all user identities subject to strict verification and retention for at least five years; any anonymous addresses and unauthorized DeFi protocol services are prohibited. Such requirements are far more stringent and complex than traditional financial institutions’ KYC standards. Especially in large-scale application scenarios, relying solely on traditional document scanning and facial recognition is insufficient to meet requirements and cannot withstand attacks from forged documents and AI face swapping. — Owen Tao, CEO