‘Stablecoin ordinance has taken effect’ – Hong Kong pushes for crypto regulation

ambcryptoPublished on 2026-02-01Last updated on 2026-02-01

Abstract

Hong Kong has activated a licensing regime for fiat-backed stablecoin issuers, with the Stablecoin Ordinance taking effect in August. Financial Services Secretary Christopher Hui stated that the Hong Kong Monetary Authority (HKMA) is currently processing license applications. The government views crypto as a "new growth area" to strengthen the city’s status as an international financial hub. Regulatory details for trading platforms, custody services, and advisory providers are being developed, alongside enhanced anti-money laundering measures. The first approved issuers are expected in Q1 2026. Financial Secretary Paul Chan emphasized the need for strong safeguards to protect investors and ensure market stability, aligning with global regulatory trends like those in the U.S. and U.K.

Hong Kong has revealed that it has activated licensing for issuers of fiat-based stablecoins amid a broader push for crypto regulatory clarity.

During a policy briefing with the Legislative Council’s Finance Committee, Secretary for Financial Services and the Treasury, Christopher Hui, said,

“The Stablecoin Ordinance was officially implemented last August, introducing a licensing system for fiat-denominated stablecoin issuers in Hong Kong. The Hong Kong Monetary Authority (HKMA) is currently processing relevant license applications.”

Hui framed crypto as a ‘new growth area’ that could further reinforce the city as an international finance center.

The official noted that regulators are working on the details of the relevant regulatory regime for virtual asset trading and custody service providers, as well as other aspects of digital asset markets.

He added,

“The Financial Services and the Treasury, and the SFC are also further consulting the public on establishing a regulatory regime for service providers offering advice on virtual assets and virtual asset management service providers...”

Additionally, to combat tax evasion in the sector and strengthen anti-money laundering efforts, the official said they were collecting feedback on the same.

Issuer approvals expected in Q1

The first batch list of approved licensed stablecoin issuers in Hong Kong is expected in Q1 2026, according to the city’s Financial Secretary Paul Chan Mo-po.

During the annual World Economic Forum in Davos, the finance chief billed digital assets as,

“Financial innovation that we should embrace proactively. We also believe digital assets should serve the real economy.”

Mo-po pressed that the city must build strong guardrails to mitigate crypto market-related risks that could undermine broader financial stability, the overall market integrity, and protect investors.

Indeed, Hong Kong’s stablecoin bill requires strict standards for reserves, redemption, and risk measures.

Similarly, it tightened rules on custodians and dealers, laying the groundwork for a broader crypto regulatory framework.

The trend mirrors regulatory approaches in the U.K. and the U.S to offer clear rules for the growing sector. Notably, the U.S. passed its stablecoin bill last year, marking a significant step for digital assets.

However, the broader market structure bill, the CLARITY Act, still faces uncertainty. Contentious issues, such as yield and tokenized stocks, continue to stall its progress.

In the U.K., Parliament recently launched a stablecoin inquiry to review the proposed regulatory regime that is set to be finalized by the end of 2026.

Final Thoughts

  • Hong Kong is gearing up to list its first batch of approved and licensed stablecoin issuers in Q1.
  • Top officials believe crypto is a ‘new growth’ area to position Hong Kong as an international finance center.

Related Questions

QWhen did the Stablecoin Ordinance officially take effect in Hong Kong?

AThe Stablecoin Ordinance officially took effect in August of last year.

QWhat is the expected timeline for the first batch of approved licensed stablecoin issuers in Hong Kong?

AThe first batch of approved licensed stablecoin issuers is expected in the first quarter (Q1) of 2026.

QAccording to the Financial Secretary, what role should digital assets serve?

AFinancial Secretary Paul Chan Mo-po stated that digital assets should serve the real economy.

QWhich two regulatory bodies are consulting the public on establishing a regime for virtual asset advisory and management services?

AThe Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC) are conducting the public consultation.

QWhat are some of the key areas the Hong Kong stablecoin bill imposes strict standards on?

AThe bill imposes strict standards on reserves, redemption processes, and risk management measures for stablecoin issuers.

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