Hong Kong will issue its first stablecoin issuer licenses next month, marking a key step in the city's 2026–2027 budget. Financial Secretary Paul Chan confirmed the timeline during his budget speech, noting that a licensing regime for stablecoin issuers is now in place. Authorities expect to approve the first fiat-referenced stablecoin issuers in March. Chan said regulators will help licensed issuers explore practical use cases, but will require strict compliance and strong risk controls. The move signals a shift from policy design to active implementation.
Regulatory Scope Expands to Dealers and Custodians
Beyond stablecoins, the government plans to widen its regulatory reach this year. A bill covering digital asset dealers and custodian service providers will be introduced. Digital asset dealing includes regulated buying and selling of virtual assets as a business, capturing over-the-counter trading activities. The proposed legislation extends supervision beyond trading platforms and stablecoin issuers, aiming to create a clearer framework for custody and brokerage. Chan stressed that the new measures will strengthen market structure as more participants enter the sector.
Liquidity Drive and Tokenization Plans Gain Momentum
Liquidity is now central to Hong Kong's crypto agenda. The Securities and Futures Commission (SFC) will take further steps to improve market depth and broaden product offerings for professional investors. An accelerator will be established to speed up innovation. Earlier this month, SFC Executive Director of Intermediaries Eric Yip said the agency will prioritize market quality in 2026, emphasizing price discovery and investor confidence through responsible product expansion.
Tokenization remains a strategic focus. Chan announced that debenture holder registers may be maintained on blockchain networks. The government will also explore electronic signatures for tokenized bond issuance. The Hong Kong Monetary Authority will continue upgrading the EnsembleTX platform, which enables continuous settlement of tokenized deposits and digital assets. Additionally, the Inland Revenue Ordinance will be amended over the next two years to align with the OECD Crypto Asset Reporting Framework and updated global reporting standards. Hong Kong's coordinated push—combining stablecoin licensing, dealer/custodian legislation, liquidity enhancement, and tokenization infrastructure—reflects an effort to build a structured digital asset framework while expanding oversight and market depth.