Our Partner, Gordon Tsang, has been appointed as a member of the panel of adjudicators for the Obscene Articles Tribunal by the Chief Justice. This appointment is effective from June 17, 2025, and will span a term of three years.

The Obscene Articles Tribunal, consisting of a Presiding Magistrate and two or more adjudicators, carries out two main tasks with respect to articles and matters – classification and determination.

For any enquiries, please contact our Partner Gordon Tsang.

The Hong Kong[1] Government has confirmed that the Stablecoins Ordinance will take effect on 1 August 2025,[2] requiring issuers of fiat-referenced stablecoins in Hong Kong or those pegged to the Hong Kong dollar (“HKD”) to be licensed by the Hong Kong Monetary Authority (“HKMA”).

Overview of the Stablecoins Ordinance

The Stablecoins Ordinance aligns Hong Kong’s virtual assets regulatory framework with international standards under the “same activity, same risks, same regulation” principle.

The Stablecoins Ordinance sets out a regulatory framework for activities relating to “specified stablecoins” (“Specified Stablecoins”). Specified Stablecoins, as a type of virtual assets used as a medium of exchange, maintain a stable value with reference to one or more official currencies, such as the HKD, or a digital representation of value.[3] Issuers of Specified Stablecoins in Hong Kong must obtain a licence from the HKMA and continue to comply with the comprehensive requirements.

Key Provisions of the Licensing Regime

 The Stablecoins Ordinance introduces a comprehensive regulatory framework for the issuance, offering, and marketing of Specified Stablecoins. Below are the key provisions: –

Licensing Requirement

 Any person engaging in the following activities must obtain a license from the HKMA: –

• issuing Specified Stablecoins in Hong Kong in the course of business;
• issuing Specified Stablecoins outside Hong Kong that are pegged, wholly or partly, to the HKD; and
• carrying out activities designated by the HKMA as “regulated stablecoin activities”.

 Requirements of Licensed Issuers

To obtain a licence from the HKMA for issuing Specified Stablecoins, applicants must satisfy, including but not limited to, the following minimum criteria: – [4]

 Offering Restrictions The Stablecoins Ordinance regulates not only the issuance of Specified Stablecoins, but also who can offer Specified Stablecoins, including but not limited to: –

• Licensees under the Stablecoins Ordinance;
• SFC-licensed virtual asset trading platform operators under the Securities and Futures Ordinance (Cap. 571);
• SFC-licensed corporations for Type 1 (dealing in securities) activity;
• Authorised institutions under the Banking Ordinance (Cap. 155);
• Stored value facility (“SVF”) licensees under the Payment Systems and Stored Value Facilities Ordinance (Cap. 584);

Under the new regime, Specified Stablecoins issued by HKMA-licensed issuers can be offered to retail investors; others are restricted to professional investors or exempted persons designated by the HKMA or Financial Secretary. Transitional Arrangements Existing stablecoin issuers (“Issuers”) have a three-month period from 1 August 2025 (“Effective Date”) to apply for a licence, during which they may continue regulated stablecoin activities without immediate penalty. Issuers meeting the following conditions may receive a six-month extension: –

• Submitting a license application within three months from the Effective Date;
• Receiving written confirmation from the HKMA acknowledging the application;
• Providing a written statement confirming they were conducting regulated stablecoin activities in Hong Kong before the Effective Date; and
• Providing a written undertaking to comply with regulatory requirements applicable to licensed issuers upon receiving a temporary license.

Issuers failing to apply within three months will enter a one-month wind-down period starting three months after the Effective Date. Issuers whose applications are rejected or withdrawn will enter a one-month wind-down period from the date of rejection or withdrawal, with the option to apply for an extension.AML/CFT Requirements On 26 May 2025, the HKMA released a consultation paper outlining proposed AML/CFT requirements for regulated stablecoin activities. Key proposals include, but are not limited to: –

• Customer Due Diligence (“CDD”): Conducting CDD for customers involved in issuance or redemption transactions of HK$8,000 or more, including verifying wallet ownership;
• Unhosted Wallets: Implementing enhanced monitoring, transaction limits, and screening for transfers to unhosted wallets to mitigate money laundering and terrorist financing (“ML/TF”) risks;
• Ongoing Monitoring: Using blockchain analytics to track transaction histories and detect illicit activities, with mandatory suspicious transaction reporting;
• Travel Rule Compliance: Adhering to virtual asset transfer requirements under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), ensuring due diligence on custodial wallet providers; and
• Secondary Market Monitoring: Proposing measures such as limiting primary distribution to regulated entities, using blockchain analytics, and blacklisting illicit wallet addresses to combat ML/TF risks in peer-to-peer trading.

Feedback on these proposals is due by 30 June 2025.Implications for the Virtual Asset Industry Enhanced Investor Confidence: The stringent licensing requirements, including reserve asset segregation and AML/CFT compliance, provide greater assurance to investors, reducing the risk of fraud and financial instability.

• Attracting Global Players: The Stablecoins Ordinance’s alignment with international standards and its pragmatic approach make Hong Kong an attractive destination for both traditional financial institutions and fintech startups.
• Compliance Challenges: Smaller issuers may face significant costs in meeting the HKMA’s high regulatory standards, particularly in areas like reserve management, ongoing auditing, and AML/CFT compliance.

Conclusion The Stablecoins Ordinance, set to take effect on 1 August 2025, represents a significant step forward in Hong Kong’s digital finance journey. By balancing innovation with robust regulation, the Stablecoins Ordinance enhances market integrity, protects consumers, and positions Hong Kong as a competitive player in the global virtual asset landscape. Collaboration between regulators, issuers, and industry stakeholders will be essential to ensure a smooth transition and sustainable growth in Hong Kong’s stablecoin ecosystem.For issuers, compliance with the Stablecoins Ordinance will require significant investment in legal, operational, and financial systems, especially regarding reserve asset management and AML/CFT controls. While this may raise barriers to entry for smaller or less well-capitalised firms, it is expected to enhance overall market credibility and attract established financial institutions and global fintech companies to the Hong Kong market.For investors and users, the new licensing and supervisory requirements are designed to boost confidence in the safety and reliability of stablecoins available in Hong Kong, particularly for retail users who will have access only to products issued by HKMA-licensed entities.Please contact our Partner Mr. Rodney Teoh for any enquiries or further information.This news update is for information purposes only. Its content does not constitute legal advice and should not be treated as such. Stevenson, Wong & Co. will not be liable to you in respect of any special, indirect or consequential loss or damage arising from or in connection with any decision made, action or inaction taken in reliance on the information set out herein.[1] In this article, “Hong Kong” means the “Hong Kong Special Administrative Region of the People’s Republic of China”.[2] On 21 May 2025, the Legislative Council of Hong Kong passed the Stablecoins Bill; “Stablecoins laws effective Aug 1”.[3] Section 4 of the Stablecoins Ordinance[4] Schedule 2 Part 2 of the Stablecoins Ordinance

Please contact our Partner Mr. Rodney Teoh for any enquiries or further information.

This news update is for information purposes only. Its content does not constitute legal advice and should not be treated as such. Stevenson, Wong & Co. will not be liable to you in respect of any special, indirect or consequential loss or damage arising from or in connection with any decision made, action or inaction taken in reliance on the information set out herein.

Ms Chui was joined by distinguished panellists including Dr Cheung Kwok-kwan, SBS, JP, Deputy Secretary for Justice; Peggy Au-Yeung, Principal Government Counsel at the Department of Justice; and Professor Giuliano G. Castellano, Associate Professor of Law at the University of Hong Kong. Together, they engaged in a dynamic discussion on Hong Kong’s strategic position under the “one country, two systems” framework, with a particular focus on its expanding role in cross-border legal cooperation and international arbitration.

From the left: Professor Giuliano G. Castellano, Associate Professor of Law at the University of Hong Kong; our Partner Heidi Chui; Dr Cheung Kwok-kwan, SBS, JP, Deputy Secretary for Justice; and Peggy Au-Yeung, Principal Government Counsel at the Department of Justice

The event served as a valuable platform for exploring the evolving legal landscape of Hong Kong and its growing importance as a trusted hub for international legal services. Ms Chui shared practical insights on conducting corporate operations in Hong Kong, highlighting how businesses can leverage the city’s unique legal and institutional strengths to navigate the global marketplace.

Please contact our Partner Heidi Chui for any inquiries or further information.

第七届香港法律服务论坛于2025年5月27日在西安国际会议中心圆满举办。本届论坛以“服务共建‘一带一路’ 谱写陕港合作新篇”为主题，由香港律政司、陕西省司法厅、陕西省人民政府港澳事务办公室主办，香港贸易发展局、西安市人民政府共同承办。

左起: 甘子豪律师注册外地律师﹑合伙人叶小铃律师﹑律政司司長林定國資深大律師，和合伙人徐凯怡律师

本所合伙人、诉讼及争议解决部主管，香港律师会理事徐凯怡律师，合伙人叶小铃律师和甘子豪律师注册外地律师参加了由香港大律助公会与香港律师会组成的代表团，向陕西及邻近地区的法律界和企业推介香港的国际法律及争议解决服务。

本届论坛分为上午两场主论坛和下午模拟调解两大核心环节，由具丰富处理国际及跨境法律事务经验的香港法律及争议解决专家分享他们的真知灼见，从多角度探讨企业所面对的法律问题。徐律师作为香港律师会理事﹑大中华法律事务委员会副主席及仲裁委员会委员，在模拟仲裁庭环节担任旁述，解构国际仲裁中仲裁庭如何透过律师的盘问，对事实和法律问题作出裁判。

此外，徐律师﹑叶律师和甘律师与当地企业进行“一对一”咨询，对接港澳两地法律服务需求。

论坛吸引了超过800名当地律师及业界代表出席﹐深化了陕港两地法律服务和人才培养交流合作，推动两地法律服务机构为「一带一路」高质量发展、国家企业和公民「走出去」提供优质高效的法律服务。

如阁下有任何查询或想了解更多详情，请联络本所合伙人徐凯怡律师或合伙人叶小铃律师。