Global law firm Linklaters has released its June 2025 Asia Financial Regulatory Update, spotlighting significant legislative changes in Hong Kong and Singapore that are set to reshape the financial landscape. These developments, which include new regulations for stablecoins and corporate governance, are crucial for fintech, banking, and capital markets sectors.
In Hong Kong, the Legislative Council has passed the Stablecoins Bill, establishing a licensing regime for fiat-referenced stablecoin issuers, effective from 1 August 2025. This move aligns with international standards, enhancing the digital asset regulatory framework. Additionally, the Hong Kong Monetary Authority (HKMA) has initiated consultations on stablecoin supervision and anti-money laundering (AML) requirements, with feedback due by 30 June 2025. The HKMA has also provided guidance for banks to implement the revised FX Global Code, focusing on mitigating settlement risk and enhancing transparency.
Meanwhile, Singapore’s Monetary Authority of Singapore (MAS) has announced the formation of a Corporate Governance Advisory Committee to review the Code of Corporate Governance for listed companies. This review aims to bolster corporate governance practices. Furthermore, MAS has proposed amendments to margin requirements for capital market services licence holders and plans to streamline prospectus requirements to broaden investor outreach for initial public offerings (IPOs).
These regulatory updates are pivotal as they aim to align with global standards and address the evolving needs of the financial markets in Asia. As these changes take effect, businesses operating in the region will need to adapt to the new regulatory environment, potentially impacting their operations and compliance strategies.
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