Hong Kong Plans First Stablecoin Issuer Licences in Q1 Amid Crypto Push

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.

Hong Kong Positions Stablecoins at the Core of Its Digital Finance Strategy

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.

Hong Kong’s stablecoin plans sit alongside an already active framework for crypto trading platforms.

Under rules enforced by the Securities and Futures Commission, 11 virtual asset trading platforms have received licences to date.

Approved operators include OSL, HashKey, and Bullish, according to the regulator’s public disclosures.

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.

Hong Kong Asset Managers Warn Crypto Rule Change Could Deter Traditional Funds

As reported, the Hong Kong securities industry is urging regulators to rethink proposed changes that would tighten rules around crypto exposure in traditional investment portfolios, warning the move could discourage mainstream asset managers just as the city seeks to expand its digital-asset market.

In a submission to the Securities and Futures Commission, 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.

The proposal comes as Hong Kong broadens its digital-asset framework, with authorities consulting on new licensing regimes for virtual asset dealing, advisory, and management services.