Hong Kong has begun processing license applications for fiat-based stablecoin issuers under its recently enacted Stablecoin Ordinance. Officials confirmed the move, framing digital assets as a new growth area to reinforce the city’s status as an international finance center. The first approved issuers are expected to be announced in early 2026.
Hong Kong has activated its licensing regime for fiat-denominated stablecoin issuers. The move follows the official implementation of the Stablecoin Ordinance in August last year.
During a policy briefing, Secretary for Financial Services and the Treasury, Christopher Hui, stated the Hong Kong Monetary Authority (HKMA) is currently processing relevant license applications. Hui described cryptocurrency as a ‘new growth area’ for the city’s financial sector.
Regulators are also developing details for a regulatory regime covering virtual asset trading and custody services. “The Financial Services and the Treasury, and the SFC are also further consulting the public on establishing a regulatory regime for service providers offering advice on virtual assets and virtual asset management service providers…” Hui added.
The first batch of approved licensed stablecoin issuers is expected in the first quarter of 2026, according to Financial Secretary Paul Chan Mo-po. At the World Economic Forum in Davos, he billed digital assets as “Financial innovation that we should embrace proactively.”
Mo-po emphasized the need for strong guardrails to mitigate crypto market risks. The city’s stablecoin bill requires strict standards for reserves, redemption, and risk management.
This regulatory approach mirrors developments in other major jurisdictions. The U.S. passed its own stablecoin legislation last year, while the U.K. Parliament recently launched a stablecoin inquiry.
