Hong Kong Begins Stablecoin Licensing in Major Crypto Push

Hong Kong’s stablecoin licensing regime is now live and processing applications. Christopher Hui, Secretary for Financial Services and the Treasury, confirmed today that the Hong Kong Monetary Authority (HKMA) is reviewing license applications under the Stablecoin Ordinance.

Hui made the announcement at a Legislative Council Finance Committee policy briefing on January 30. He also revealed that a full regulatory framework for virtual assets will be submitted to the legislature this year.

HKMA Processing Stablecoin License Applications

The Stablecoin Ordinance came into effect in August 2024. It introduced a licensing system for fiat-denominated stablecoin issuers in Hong Kong.

The HKMA is now actively reviewing applications from issuers looking to operate legally in the city. This makes Hong Kong one of the few major financial hubs with a clear stablecoin licensing path.

New Rules Coming This Year

Stablecoins are just one piece. Hui confirmed that Hong Kong will submit a draft ordinance covering virtual asset trading platforms, custody providers, advisory services, and asset management providers to the Legislative Council in 2026.

The Financial Services and Treasury Bureau (FSTB) and Securities and Futures Commission (SFC) wrapped up their consultation on trading and custody rules in December.

A separate consultation on advisory and management services is still ongoing.

Crypto Tax Reporting Kicks Off in 2028

Hong Kong is also preparing to implement the OECD’s Crypto-Asset Reporting Framework (CARF). Starting in 2028, the city will automatically exchange crypto transaction tax data with other jurisdictions.

Public comments on the legislative proposals are currently being collected.

The regulatory push comes as Hong Kong works to strengthen its role as an international financial center under China’s 15th Five-Year Plan. For crypto firms watching Asia, the city just made its intentions clear.