Hong Kong Set to Issue First Stablecoin Licenses in Q1 2026
Hong Kong will issue its first batch of licenses to stablecoin providers in the first quarter of 2024, following the introduction of its new stablecoin licensing regime in August 2023. Companies offering or marketing stablecoins to the public must gain approval from the Hong Kong Monetary Authority, meeting requirements on reserve assets, redemptions, fund segregation, and anti-money laundering compliance. As of September 2025, 36 firms have applied for licenses, including a joint venture involving Standard Chartered, Animoca Brands, and HKT. Well-known mainland Chinese firms, such as Alipay and JD.com, withdrew from the process after regulatory pushback. Hong Kong aims to enhance its standing as a fintech and Web3 hub by adopting a “proactive yet prudent” regulatory approach and introducing licensing frameworks for both stablecoins and crypto exchanges. The government has issued $2.1 billion in tokenized green bonds and introduced spot Bitcoin and Ethereum ETFs, but the sector has faced setbacks, notably the $205 million JPEX exchange collapse, leading to criminal charges against 16 individuals. Despite challenges, momentum continues as global interest in stablecoins and digital assets grows.
