Hong Kong to Issue First Stablecoin Licenses by Early 2026 Under New Regulatory Framework

Hong Kong’s financial authorities have confirmed that the first stablecoin licenses will be issued by early 2026, following the recent implementation of a new regulatory framework. The Hong Kong Monetary Authority (HKMA) has begun accepting applications but emphasized that the approval process will be rigorous, with only a limited number of licenses—likely three or four—granted initially. This cautious approach reflects concerns over financial stability and compliance, particularly given the strict reserve, custody, and anti-money laundering requirements imposed under the new ordinance [1].

The licensing regime is expected to attract major players in the region, with several Hong Kong-based branches of Chinese banks and securities firms, including Bank of China Hong Kong and Guotai Junan International, already positioning themselves to enter the regulated stablecoin market. These institutions will need to demonstrate financial stability and viable use cases to meet the HKMA’s stringent criteria. Cora Ang, Head of Legal and Compliance at Amina Group, noted that the regime will exclude applicants who cannot align with the regulatory standards or prove their financial credibility [3].

The delayed licensing timeline, initially set for the end of 2025, has been extended to allow for more thorough due diligence. This delay underscores the regulator’s commitment to ensuring that all necessary safeguards are in place before allowing stablecoin issuance. The HKMA’s Vice President, Chen Weimin, confirmed that the initial approvals are expected in early 2026 [8]. This approach is seen by industry observers as a strategic move to reinforce Hong Kong’s reputation as a responsible fintech hub, attracting well-capitalized and compliant participants while building investor trust [4].

Market analysts predict that the licensing regime will lead to increased institutional participation and capital inflows into the stablecoin sector. The clarity provided by the new regulations is expected to foster growth in the digital asset market and potentially set a precedent for regulatory approaches in other jurisdictions. The initiative aligns with global trends of tightening crypto oversight, with Hong Kong adopting a balanced strategy that supports innovation while mitigating risks [9].

The regulatory environment is also expected to influence broader developments in the cryptocurrency space. Coincu research highlights that the move could stimulate technological advancements and expand the stablecoin ecosystem in Hong Kong. As financial institutions prepare to meet the licensing requirements, the market watches closely for signs of how this initiative will shape the future of digital assets in the region [2].

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[1] https://coinmarketcap.com/community/articles/688f5895aba96a1b6ac73d48/