Hong Kong to Issue First Stablecoin Licences in Early 2025

TheNewsCryptoPublished on 2026-01-21Last updated on 2026-01-21

Abstract

Hong Kong is set to issue its first batch of stablecoin licences in the first quarter of 2025, as part of its strategy to become a regional hub for digital assets. Financial Secretary Paul Chan announced the plan at the World Economic Forum in Davos, emphasizing the city’s responsible and sustainable approach to crypto regulation. The licensing regime, introduced last year, imposes strict requirements on stablecoin issuers, including rules on reserve backing, governance, and risk management. This initiative is part of a broader effort to build a comprehensive digital asset ecosystem, which also includes licensed trading platforms and tokenised financial products. Hong Kong has already licensed 11 virtual asset trading platforms, including OSL and HashKey, and is advancing in tokenisation through initiatives like Project Ensemble. Meanwhile, regulators are developing additional proposals for licensing crypto-related services, though concerns have been raised about potential compliance costs affecting traditional asset managers.

Hong Kong is getting ready to issue its first batch of stablecoin issuer licences in Q1 of 2025, accelerating its efforts to place itself as a regional hub for digital assets at a time of increasing global competition.

The Financial Secretary of Hong Kong, Paul Chan, spoke at the World Economic Forum in Davos about how the approach of the city towards crypto regulation is responsible and sustainable, as revealed by the South China Morning Post.

The financial secretary committed that the starting round of stablecoin licences is anticipated to be allowed in the near future. Chan established stablecoins as a segment of a wider push to make a complete digital asset ecosystem in Hong Kong, bridging regulated stablecoin issuance, licensed trading platforms and tokenised financial products.

He characterised digital finance as a strategic growth pillar as the city looks to maintain its status as a global financial centre. The stablecoin licensing regime passed last year describes strict requirements for fiat-referenced stablecoin issuers.

These comprise rules on reserve backing, redemption rights, governance, and risk management, showing the focus of regulators on financial stability and consumer protection after volatility in global crypto markets.

The Other Works By the Country

The stablecoin plans of the company stand beside a so far active framework for crypto trading platforms. As per the rules imposed by the Securities and Futures Commission, 11 virtual asset trading platforms have got licences to date.

Approved operators comprise OSL, HashKey and Bullish, as per the public disclosures of the regulator. After trading in stablecoins, Hong Kong is also delving deeper into tokenisation.

Last year, in November, the Hong Kong Monetary Authority rolled out a pilot under Project Ensemble to test actual-value transactions leveraging tokenised deposits and digital assets, comprising major banks and asset managers.

Meanwhile, regulators are working on additional proposals that would roll out new licensing regimes for crypto asset dealing, advisory, and management services. At the start of this week, the Hong Kong Securities and Futures Professionals Association alerted that tighter virtual asset management regulations could put off traditional asset managers by increasing compliance costs and decelerating institutional participation.

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TagsHong KongLicenseStablecoin

Related Questions

QWhen is Hong Kong planning to issue its first batch of stablecoin licences?

AIn Q1 of 2025.

QWho is the Financial Secretary of Hong Kong and where did he discuss the city's crypto regulation approach?

APaul Chan, and he spoke about it at the World Economic Forum in Davos.

QWhat are some of the key requirements for stablecoin issuers under Hong Kong's new licensing regime?

AThe requirements include rules on reserve backing, redemption rights, governance, and risk management.

QName two licensed virtual asset trading platforms in Hong Kong mentioned in the article.

AOSL and HashKey.

QWhat is the name of the project launched by the Hong Kong Monetary Authority to test tokenised transactions?

AProject Ensemble.

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