Hong Kong revealed that it has activated licenses for issuers of fiat currency-based stablecoins as part of a broader push for clarity in crypto regulation.
In a policy briefing with the Legislative Council’s finance committee, Financial Services and Treasury Secretary Christopher Hui, said,
“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 touted crypto 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 providers of virtual asset trading and custody services, as well as other aspects of digital asset markets.
He added,
“Financial Services and the Treasury, together with the SFC, are also consulting further with the public on establishing a regulatory regime for service providers offering advice on virtual assets and providers of virtual asset management services…”
Furthermore, to combat tax evasion in the sector and strengthen anti-money laundering efforts, the official said they are collecting feedback on the matter.
Issuer approvals expected in first quarter
The first batch list of licensed stablecoin issuers in Hong Kong is expected in the first quarter of 2026, according to to the city’s financial secretary, Paul Chan Mo-po.
At the annual World Economic Forum in Davos, the finance chief presented digital assets as:
“A financial innovation that we should proactively embrace. We also believe that digital assets should serve the real economy.”
Mo-po insisted that the city must build strong safeguards to mitigate crypto market risks that could undermine broader financial stability, overall market integrity and protect investors.
Indeed, the Hong Kong stablecoin bill need strict standards for reserves, redemption and risk measures.
Likewise, he tightened rules on custodians and brokers, laying the foundation for a broader crypto regulatory framework.
This trend reflects the regulatory approaches taken in the UK and US, which provide clear rules for this growing sector. Notably, the United States passed its stablecoin bill last year, marking a significant milestone for digital assets.
However, the broader market structure bill, the CLARITY Act, still faces uncertainties. Controversial issues, such as yield and tokenized shares, continue to block its progress.
In the United Kingdom, Parliament recently launched a stablecoin investigation to review the proposed regulatory regime which is expected to 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 say crypto is a “new growth area” to position Hong Kong as an international financial hub.
