Hong Kong Plans First Stablecoin Issuer Licences in Q1 Amid Crypto Push
Hong Kong is making ready to concern its first batch of stablecoin issuer licences in the primary quarter of the 12 months, stepping up efforts to place itself as a regional hub for digital property amid rising world competitors.
Key Takeaways:
- Hong Kong will concern its first stablecoin licences in Q1 to advance its digital asset technique.
- Issuers should meet strict reserve, redemption, and danger administration requirements.
- The push coincides with wider crypto regulation and tokenization initiatives.
Speaking on the World Economic Forum in Davos, Hong Kong Financial Secretary Paul Chan mentioned the town’s strategy to crypto regulation stays “accountable and sustainable,” according to the South China Morning Post.
Chan reportedly confirmed that the preliminary spherical of stablecoin licences is anticipated to be granted in the approaching months.
Hong Kong Positions Stablecoins on the Core of Its Digital Finance Strategy
Chan framed stablecoins as a part of a broader push to construct a full digital asset ecosystem in Hong Kong, spanning regulated stablecoin issuance, licensed buying and selling platforms, and tokenized monetary merchandise.
He described digital finance as a strategic development pillar as the town seeks to take care of its standing as a world monetary heart.
The stablecoin licensing regime, handed in 2025, units out strict necessities for fiat-referenced stablecoin issuers.
These embody guidelines on reserve backing, redemption rights, governance, and danger administration, reflecting regulators’ give attention to monetary stability and shopper safety following volatility in world crypto markets.
Hong Kong’s stablecoin plans sit alongside an already lively framework for crypto buying and selling platforms.
Under guidelines enforced by the Securities and Futures Commission, 11 digital asset buying and selling platforms have obtained licences thus far.
Approved operators embody OSL, HashKey, and Bullish, based on the regulator’s public disclosures.
Beyond buying and selling and stablecoins, Hong Kong can be pushing deeper into tokenization.
In November 2025, the Hong Kong Monetary Authority launched a pilot below Project Ensemble to check real-value transactions utilizing tokenized deposits and digital property, involving main banks and asset managers.
At the identical time, regulators are consulting on further proposals that might introduce new licensing regimes for crypto asset dealing, advisory, and administration companies.
Earlier this week, the Hong Kong Securities and Futures Professionals Association warned that tighter virtual asset management rules might deter conventional asset managers by elevating compliance prices and slowing institutional participation.
Hong Kong Asset Managers Warn Crypto Rule Change Could Deter Traditional Funds
As reported, the Hong Kong securities business is urging regulators to rethink proposed modifications that might tighten guidelines round crypto publicity in conventional funding portfolios, warning the transfer might discourage mainstream asset managers simply as the town seeks to develop its digital-asset market.
In a submission to the Securities and Futures Commission, the Hong Kong Securities and Futures Professionals Association argued in opposition to eradicating the long-standing “de minimis” exemption for Type 9 licensed managers, which presently permits restricted crypto publicity with out triggering a separate digital asset administration licence.
The proposal comes as Hong Kong broadens its digital-asset framework, with authorities consulting on new licensing regimes for digital asset dealing, advisory, and administration companies.
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