Hong Kong is set to issue its first batch of fiat-backed stablecoin licenses in March and prepare legislation for virtual asset dealers and custodians by 2026, regulatory officials announced. The moves aim to cement the city’s role in tokenized finance and compliant stablecoin issuance.
Stablecoin Licenses: Small Cohort First
The Hong Kong Monetary Authority (HKMA) will grant the first stablecoin issuer licenses in March. Under the already-enacted regime, only a small cohort of applicants will get approval, allowing them to explore use cases in a controlled, risk-managed environment, according to the regulator.
2026 Legislation for Dealers and Custodians
The Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB) plan to introduce legislation for virtual asset dealers and custodians in 2026. The new rules will align standards with those for securities brokers and licensed custodians. The SFC also aims to boost liquidity and expand product offerings for professional investors, including crypto margin financing and derivatives. An accelerator for innovation is also in the pipeline.
Tokenization remains a key priority. New guidance will allow debenture registers to be maintained on blockchains, and electronic signatures can be used for tokenized bond issuance.
Wholesale CBDC Pilot Moves Forward
The HKMA continues developing the EnsembleTX platform, a pilot wholesale central bank digital currency designed for 24/7 real-value settlement of tokenized deposits and cross-border digital assets.
Tax Compliance Aligns with Global Standards
Hong Kong will amend the Inland Revenue Ordinance over the next two years to implement the OECD’s Crypto Asset Reporting Framework and updated Common Reporting Standard, ensuring tax transparency meets international norms.
The combined regulatory push is designed to strengthen Hong Kong’s legal framework, boost market liquidity, and position the city as a hub for tokenized finance, with clear milestones from March stablecoin licenses to the 2026 dealer-custodian laws.