Hong Kong to issue first stablecoin issuer licenses in March

Key points:

• The first licenses for fiat-backed stablecoin issuers will be approved in March 2026.
• A bill to license digital asset dealers and custodians will be introduced in 2026.
• Hong Kong will expand tokenization initiatives and update tax rules.

Hong Kong Financial Secretary Paul Chan announced in his 2026–2027 budget speech that the city will issue its first batch of licenses to issuers of fiat-backed stablecoins in March.

According to Chan, the licensing regime has already been implemented, and regulators will support the development of new stablecoin use cases while ensuring robust risk management standards.

Expansion of crypto sector regulation

In 2026, authorities will introduce a bill to license digital asset dealers and custodial service providers. This will expand the regulatory perimeter beyond trading platforms and stablecoin issuers.

Dealer activities refer to professional services involving the purchase, sale, and exchange of virtual assets, including over-the-counter (OTC) trading.

The Securities and Futures Commission (SFC) will focus on enhancing crypto market liquidity and broadening the range of products available to professional investors. Earlier, the regulator announced plans to allow margin lending and crypto derivatives trading for qualified market participants.

Hong Kong launches licensing for dealers and custodial providers

Hong Kong authorities are preparing new licensing regimes for companies involved in trading and custodial services for digital assets

Читать дальше

Tokenization and tax transparency

Another key priority will be the tokenization of traditional financial instruments. The government will issue guidance on maintaining registers of bondholders on blockchain and consider the use of electronic signatures in the issuance of tokenized bonds.

The Hong Kong Monetary Authority will continue developing EnsembleTX, its wholesale central bank digital currency pilot platform. The system is designed to enable 24/7 settlement of tokenized assets and strengthen cross-border interoperability.

In addition, over the next two years Hong Kong will amend its tax legislation to implement the OECD’s crypto-asset reporting framework and the updated common reporting standard.