Hong Kong Push for Stablecoin Issuers in Q1: What’s at Stake?

TLDR

• Hong Kong is set to issue its first stablecoin issuer licences in the first quarter of 2026.
• The stablecoin licensing framework includes strict rules on reserve backing, redemption rights, governance, and risk management.
• Paul Chan confirmed that the new licensing regime is part of Hong Kong’s strategy to strengthen its digital asset ecosystem.
• Eleven virtual asset trading platforms have already received licenses under Hong Kong’s regulatory framework.
• The Hong Kong Monetary Authority launched a pilot program to test tokenized deposits and digital assets in November 2025.

Hong Kong is preparing to issue its first batch of stablecoin issuer licences in the first quarter of the year. This move is part of the city’s broader efforts to establish itself as a regional hub for digital assets. The Hong Kong Financial Secretary, Paul Chan, confirmed the stablecoin licensing regime and the upcoming issuance of licences.

Hong Kong’s Strategic Approach to Digital Finance

At the World Economic Forum in Davos, Paul Chan emphasized that Hong Kong’s approach to crypto regulation remains “responsible and sustainable.” He stressed that the city aims to build a full digital asset ecosystem, which includes regulated stablecoin issuance, licensed trading platforms, and tokenized financial products. Chan explained that this move is part of the city’s strategy to secure its position as a global financial center.

The stablecoin licensing framework, introduced in 2025, includes strict requirements for fiat-backed stablecoin issuers. These regulations cover aspects like reserve backing, redemption rights, governance, and risk management. Chan highlighted that these rules are designed to ensure financial stability and consumer protection in the wake of global market volatility.

Hong Kong has already implemented an active framework for virtual asset trading platforms. Under the supervision of the Securities and Futures Commission, 11 virtual asset trading platforms have received licenses. These approved operators include OSL, HashKey, and Bullish, all of which comply with the city’s strict regulatory standards.

Alongside stablecoin regulation, Hong Kong is pursuing deeper tokenization efforts. In November 2025, the Hong Kong Monetary Authority (HKMA) launched a pilot program under Project Ensemble. The initiative involves testing real-value transactions using tokenized deposits and digital assets with the participation of major banks and asset managers.

Concerns Over Virtual Asset Management Rules

The Hong Kong Securities and Futures Professionals Association raised concerns about the proposed tightening of virtual asset management rules. They warned that stricter compliance requirements could deter traditional asset managers from entering the market. Specifically, they objected to the removal of the long-standing “de minimis” exemption, which allows limited crypto exposure without triggering additional licensing obligations.

These regulatory changes come as Hong Kong continues to push forward with its broader tokenization agenda. In addition to stablecoins, the city is consulting on proposals to introduce new licensing regimes for crypto asset dealing, advisory, and management services. The authorities are seeking public feedback on how best to balance innovation with regulatory oversight.

Despite the concerns from industry professionals, Hong Kong’s regulators are moving forward with their plans. They are determined to maintain the city’s competitiveness in the fast-evolving digital finance space.

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