Hong Kong moves closer to issuing stablecoin licenses

The timeline matters because Hong Kong’s stablecoin regime has already taken effect, requiring any entity that issues qualifying fiat-referenced stablecoins in the city to be licensed by the Hong Kong Monetary Authority (HKMA). The HKMA has set up a public register for licensed issuers, which currently lists no licensed stablecoin issuer as of the regulator’s published register page.

HKMA Chief Executive Eddie Yue told lawmakers that the regulator is completing its assessment of applications and plans to grant the first licenses in March, while initially keeping approvals tight. According to his remarks, the review focuses on how an issuer will use the stablecoin, the strength of its risk management, anti-money-laundering measures, and the quality and governance of the assets backing the token.

The HKMA’s register framework is designed to make licensing status verifiable for the public and counterparties, a key issue for payment firms and platforms that need clarity on which tokens are authorized for issuance and distribution in Hong Kong. The regulator’s stablecoin licensing page directs the public to the register for updates as licenses are granted.

Officials have also linked stablecoin licensing to a broader digital-asset regulatory buildout. Hong Kong’s Financial Secretary Paul Chan has said the government intends to introduce legislation that would create licensing requirements for other digital-asset market participants, including dealers and custodians, alongside the existing stablecoin issuer regime. 

The licensing push comes after Hong Kong positioned stablecoins as a regulated on-ramp for tokenized finance and payments, while emphasizing that approvals will be selective at first. Yue said the HKMA may explore mutual recognition arrangements with other jurisdictions in the future, but noted that licensed issuers must comply with Hong Kong’s rules, including requirements relevant to cross-border activity.

For now, the main near-term milestone is the close of the HKMA’s first-round reviews and the publication of the first names on the official register, which the regulator says will be updated as entities are granted a license.