Hong Kong is preparing to issue its first batch of stablecoin issuer licences in the first quarter of the year, stepping up efforts to position itself as a regional hub for digital assets amid growing global competition.
Speaking at the World Economic Forum in Davos, Hong Kong Financial Secretary Paul Chan said the city’s approach to crypto regulation remains “responsible and sustainable,” according to the South China Morning Post. Chan reportedly confirmed that the initial round of stablecoin licences is expected to be granted in the coming months.
Chan framed stablecoins as part of a broader push to build a full digital asset ecosystem in Hong Kong, spanning regulated stablecoin issuance, licensed trading platforms, and tokenized financial products. He described digital finance as a strategic growth pillar as the city seeks to maintain its status as a global financial center.
The stablecoin licensing regime, passed in 2025, sets out strict requirements for fiat-referenced stablecoin issuers. These include rules on reserve backing, redemption rights, governance, and risk management, reflecting regulators’ focus on financial stability and consumer protection following volatility in global crypto markets.
| Framework Component | Status / Details |
|---|---|
| Trading Platforms | 11 licensed platforms (e.g., OSL, HashKey, Bullish) |
| Stablecoin Licences | First batch expected in Q1 2026 |
| Tokenization | Project Ensemble pilot launched in Nov 2025 |
Beyond trading and stablecoins, Hong Kong is also pushing deeper into tokenization. In November 2025, the Hong Kong Monetary Authority launched a pilot under Project Ensemble to test real-value transactions using tokenized deposits and digital assets, involving major banks and asset managers.
At the same time, regulators are consulting on additional proposals that would introduce new licensing regimes for crypto asset dealing, advisory, and management services. Earlier this week, the Hong Kong Securities and Futures Professionals Association warned that tighter virtual asset management rules could deter traditional asset managers by raising compliance costs and slowing institutional participation.
The Hong Kong Securities and Futures Professionals Association argued against removing the long-standing “de minimis” exemption for Type 9 licensed managers, which currently allows limited crypto exposure without triggering a separate virtual asset management licence.
Keywords: Altcoin News|Hong Kong|Regulation|Stablecoin