Hong Kong's Stablecoin Revolution: How Cregis Empowers Financial Institutions in the New Regulatory Era

Hong Kong has solidified its position as Asia’s leading digital asset hub with a major regulatory breakthrough. On May 21, 2025, the Legislative Council passed the groundbreaking Stablecoins Bill, introducing a comprehensive licensing framework for fiat-referenced stablecoin (FRS) issuers. This landmark move builds on the success of Hong Kong’s virtual asset trading platform (VATP) licensing regime rolled out in 2024, reinforcing the region’s leadership in responsible digital asset innovation.

HKMA’s Strategic Vision for Digital Asset Leadership

The Hong Kong Monetary Authority (HKMA), Hong Kong’s central banking authority, has expanded its regulatory mandate to encompass stablecoin oversight. This strategic move positions the HKMA as the primary regulator for one of the most critical segments of the digital asset ecosystem.

As Chief Executive Eddie Yue emphasized, the new Ordinance creates a “risk-based, pragmatic, and flexible regulatory regime” designed to foster “healthy, responsible, and sustainable development” within Hong Kong’s digital asset landscape.

Learn more about the HKMA’s digital asset roadmap.

Key Requirements in Hong Kong’s Stablecoin Regulation

The Stablecoins Ordinance introduces stringent yet practical requirements that financial institutions must navigate:

Licensing and Operational Requirements

• Mandatory Authorization: All entities issuing fiat-referenced stablecoins in Hong Kong, or Hong Kong dollar-referenced stablecoins globally, require HKMA licensing
• Reserve Management: Licensed issuers must maintain high-quality, liquid reserve assets equivalent to outstanding stablecoin value with proper client asset segregation
• Redemption Assurance: Guaranteed par-value redemption processing with reasonable terms and conditions

Compliance and Risk Management

• AML/CFT Standards: Comprehensive anti-money laundering and counter-terrorist financing protocols
• Risk Framework: Robust risk management, disclosure, and auditing requirements
• Consumer Protection: Retail investor access limited to licensed stablecoin products only
• Marketing Controls: Advertising restrictions to prevent fraudulent schemes and protect consumers

How Cregis Streamlines Security, Efficiency & Compliance for Enterprises

As Hong Kong’s regulatory framework takes effect later this year, financial institutions face complex compliance challenges that require sophisticated technology solutions. Cregis provides a comprehensive enterprise management platform with advanced security, operational efficiency, and regulatory compliance capabilities.

Enterprise-Grade Security & Governance

Multi-Party Computation (MPC) & Multi-Signature Architecture

• Distributed key shards eliminate single points of failure
• Customizable signing thresholds aligned with enterprise risk policies
• Account structures that mirror corporate organizational hierarchies

Advanced Permission & Role Management

• Highly customizable enterprise role definitions and access controls
• Granular permission settings for different operational functions
• Segregation of duties ensures proper internal controls and audit trails

Operational Efficiency Through Automation

Automated Approval Workflows

• Configurable approval processes for different transaction types and amounts
• Automated routing based on transaction risk scores and institutional policies
• Complete audit trails for all approval decisions and workflow executions

Multi-Chain Asset Management

• Unified dashboard for managing assets across 30+ blockchain networks
• Cross-chain transaction coordination and settlement
• Real-time portfolio monitoring and management

Advanced Compliance Solutions

AML Auto Rule Engine

• Customizable transaction rules based on institutional policies
• Automated risk-based transaction blocking and approval routing
• Real-time policy enforcement with detailed decision logging

Enhanced Blockchain Analytics Powered by Elliptic

• Real-time screening against global sanctions lists and high-risk entities
• Comprehensive counterparty due diligence and blacklist monitoring
• Dynamic risk profiling based on transaction history and behavioral analysis

Why Regulatory-Ready Tech Matters in Hong Kong’s Stablecoin Market

Hong Kong’s regulatory framework creates significant opportunities for financial institutions that can demonstrate robust compliance capabilities and operational governance. The new requirements particularly emphasize:

• Reserve Asset Monitoring: Ensuring proper segregation and management of client assets
• Transaction Transparency: Maintaining clear audit trails for all stablecoin operations
• Risk Management: Implementing comprehensive AML/CFT controls for digital asset transactions
• Operational Governance: Establishing proper internal controls and multi-party authorization processes

Financial institutions leveraging Cregis’s integrated compliance and governance platform will be better positioned to:

• Meet stringent HKMA compliance requirements through advanced transaction monitoring
• Demonstrate operational transparency and internal controls to regulators
• Implement enterprise-grade governance structures that scale with business growth
• Maintain competitive advantages through superior risk management and operational efficiency

Building Your Compliance Stack with Cregis

Hong Kong’s evolving regulatory landscape demands sophisticated technology solutions that can address the core challenges of stablecoin operations. While no single platform can solve every compliance requirement, Cregis provides critical infrastructure components that financial institutions need to build their regulatory compliance framework:

• Transaction Monitoring: Advanced screening and risk assessment for all digital asset movements
• Operational Governance: Multi-signature controls and automated approval workflows that align with regulatory expectations
• Audit Readiness: Comprehensive transaction histories and compliance reporting capabilities
• Risk Management: Real-time monitoring and customizable risk controls for institutional operations

These foundational tools represent key building blocks for your stablecoin compliance strategy. As Hong Kong’s regulatory framework continues to evolve, having robust transaction monitoring and enterprise governance capabilities will be essential for maintaining operational integrity and regulatory alignment.

About Cregis

Cregis is a global leader in enterprise-grade crypto infrastructure services, dedicated to providing institutional clients with secure and scalable wallet and digital asset management solutions. Its core products include self-custodial MPC wallets, Wallet-as-a-Service (WaaS), and high-performance payment engines. By integrating advanced Multi-Party Computation (MPC) technology with flexible system integration capabilities, Cregis upholds a “security-first” philosophy to deliver a stable and reliable crypto asset architecture for businesses.

To date, Cregis has served over 3,500 institutional clients, continuously empowering enterprises worldwide to achieve efficient operations and business growth in the digital finance era.