Hong Kong to Issue First Stablecoin Licenses in March

Hong Kong Financial Secretary Paul Chan Mo-po confirmed that the government will issue its first batch of stablecoin issuer licenses in March.

The move marks the official transition from regulatory design to implementation under Hong Kong’s Stablecoins Ordinance, which took effect in August 2025.

How the Licensing Framework Works

Under the new regime, any entity issuing fiat-referenced stablecoins in Hong Kong, or issuing Hong Kong dollar-pegged stablecoins abroad, must obtain a license.

Licensed issuers are required to maintain 1:1 backing with high-quality liquid reserve assets, held in segregated accounts. They must also guarantee redemption at face value.

Authorities indicated that the initial round of approvals will be limited to a small number of applicants in order to prioritize market stability and risk control.

The Hong Kong Monetary Authority (HKMA) has reportedly received around 36 applications, spanning traditional banks such as Standard Chartered and HSBC, technology firms including Ant Group and JD.com, and native crypto companies.

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Expanding the Digital Asset Framework

The stablecoin rollout is part of a broader 2026 digital asset roadmap aimed at strengthening Hong Kong’s position as a regulated crypto hub.

The government plans to introduce additional legislation later this year to create licensing regimes for digital asset dealers, including over-the-counter (OTC) traders, and custody service providers.

The Securities and Futures Commission (SFC) is also preparing new rules to allow margin financing and derivatives trading for professional investors, with the goal of increasing market liquidity and depth.

In parallel, CMU OmniClear Holdings will launch a new digital asset platform designed to support the issuance and settlement of tokenized bonds and other financial instruments.

Tax and International Coordination

Hong Kong will amend its Inland Revenue Ordinance to adopt the OECD’s Crypto-Asset Reporting Framework (CARF). The goal is to enable automatic exchange of tax-related crypto information with other jurisdictions by 2028.

Bigger Picture

By moving from policy drafting to live licensing, Hong Kong is positioning itself as one of the first major financial centers to implement a comprehensive, regulated stablecoin regime.

The March approvals will be closely watched as a test of how traditional banks, tech firms, and crypto-native companies operate under a unified framework.

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