Hong Kong steps forward on stablecoins
The Hong Kong Monetary Authority expects to issue its first batch of stablecoin issuer licences in March.
According to chief executive Eddie Yue, the issuances will begin with a “very small number” to begin with.
At a subsequent media briefing, Yue said the licensing assessments focus on whether an issuer has a clear use case, strong operational and financial risk controls, effective anti-money laundering safeguards, and a suitable reserve backing model.
He added that licensed issuers must comply with local rules for cross-border activity, with the possibility of mutual recognition arrangements with other jurisdictions in future.
In May 2025, Hong Kong’s legislature passed a stablecoin bill creating a licensing regime for fiat-referenced stablecoin issuers.
The framework set requirements for reserve assets, redemption and risk controls.
The HKMA later confirmed the regime took effect on August 1, 2025, making issuance of such stablecoins a regulated activity requiring a licence.