Hong Kong to grant first stablecoin issuer licenses in March
Hong Kong regulators, including the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), will begin issuing the first stablecoin issuer licenses in March, with the market developing with a focus on compliance and risk control.
Financial Secretary Paul Chan announced the move during his 2026–2027 budget speech. He said the city has already implemented a licensing regime for companies issuing fiat-referenced stablecoins.
In addition, the government plans to introduce a bill this year to license digital asset dealers and custodial service providers — companies that hold crypto assets on behalf of clients. The expanded framework will go beyond trading platforms and stablecoin issuers to cover firms that professionally buy, sell or safeguard digital assets.
Regulators are also focusing on improving market liquidity. The Securities and Futures Commission plans to broaden the range of products available to professional investors, including crypto margin financing and derivatives. A dedicated accelerator will be launched to support market innovation.
Tokenization and digital infrastructure
Tokenization of traditional financial instruments is another priority. The government is preparing guidance to allow registers of debenture holders to be maintained on blockchain and to enable the use of electronic signatures for tokenized bond issuance.The Hong Kong Monetary Authority will continue developing EnsembleTX, its wholesale central bank digital currency pilot launched last year. The platform is designed to support 24/7 settlement of tokenized assets and strengthen cross-border interoperability.
Over the next two years, authorities also plan to amend tax legislation to implement the OECD Crypto Asset Reporting Framework, aligning Hong Kong with emerging global standards on crypto tax transparency.
Why it matters
Issuing the first stablecoin licenses signals that Hong Kong is moving from experimentation to a fully regulated crypto market model. Stablecoins play a central role in the digital asset ecosystem, facilitating payments, trading and cross-border transfers while combining fiat stability with blockchain efficiency.A clear legal framework could strengthen Hong Kong position as a global digital asset hub, especially amid competition from Singapore and other Asian financial centers. At the same time, stricter licensing and reporting requirements are intended to boost investor confidence and reduce systemic risks.
Ultimately, the initiative reflects a broader strategy to integrate blockchain technology into the city traditional financial infrastructure.
Previously, Hong Kong regulators approved crypto margin financing and perpetual contracts.
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