Hong Kong has revealed that it has activated licensing for fiat-based stablecoin issuers amid a broader push for clarity in crypto regulation.
During a policy briefing with the Legislative Council Finance Committee, Treasury and Financial Services Secretary Christopher Hui saying,
“The Stablecoin Ordinance was officially implemented last August, introducing a licensing system for issuers of fiat-denominated stablecoins in Hong Kong. The Hong Kong Monetary Authority (HKMA) is currently processing relevant license applications.”
Hui framed cryptocurrencies as a “new growth area” that could further strengthen the city as an international financial center.
The official noted that regulators are working on the details of the relevant regulatory regime for virtual asset trading and custody service providers, as well as other aspects of digital asset markets.
He added,
“The Financial Services and Treasury, and the SFC are also consulting the public on establishing a regulatory regime for service providers offering advice on virtual assets and providers of virtual asset management services…”
Additionally, to combat tax evasion in the sector and strengthen anti-money laundering efforts, the official said they were collecting feedback on the matter.
Issuer approvals expected in the first quarter
The first batch of licensed stablecoin issuers approved in Hong Kong is expected to be available in the first quarter of 2026. according to the city’s Secretary of Finance, Paul Chan Mo-po.
During the annual World Economic Forum in Davos, the finance chief billed digital assets as,
“Financial innovation that we should proactively adopt. We also believe that digital assets should serve the real economy.”
Mo-po insisted that the city must build strong barriers to mitigate risks related to the cryptocurrency market that could undermine broader financial stability, overall market integrity, and protect investors.
In fact, the Hong Kong stablecoin bill requires strict rules for reserves, redemptions and risk measures.
Similarly, tight rules on custodians and distributors, laying the foundation for a broader crypto regulatory framework.
The trend reflects regulatory approaches in the UK and US to provide clear rules for the growing sector. Notably, the United States passed its stablecoin bill last year, marking an important step for digital assets.
However, the broader market structure bill, the CLARITY Act, still faces uncertainty. Controversial issues such as performance and tokenized stocks continue to stall its progress.
In the UK, Parliament recently launched a stablecoin consultation to review the proposed regulatory regime that will be finalized by the end of 2026.
Final thoughts
- Hong Kong is preparing to list its first batch of approved and licensed stablecoin issuers in the first quarter.
- Senior officials believe cryptocurrencies are a “new growth” area to position Hong Kong as an international financial center.
