Hong Kong to issue first stablecoin issuer licenses next month: finance chief

Hong Kong will issue its first batch of stablecoin issuer licenses next month and introduce new legislation covering crypto asset dealers and custodians later this year, its finance chief said.

Financial Secretary Paul Chan said Wednesday in his 2026-27 budget speech that the government has already implemented a licensing regime for stablecoin issuers and that regulators will “continue facilitating licensed issuers in Hong Kong to explore different application scenarios in a compliant and risk-controlled manner.”

The first licenses for fiat-referenced stablecoin issuers are expected to be approved in March, Chan added.

The budget also confirmed that Hong Kong plans to introduce a bill this year to establish licensing regimes for digital asset dealers and custodian service providers, expanding the city’s regulatory perimeter beyond trading platforms and stablecoins. In Hong Kong, digital asset dealing refers to the regulated buying, selling, or exchanging of virtual assets as a business, such as over-the-counter trading.

Meanwhile, liquidity is emerging as a central focus for Hong Kong regulators. In the Wednesday speech, Chan noted that the Securities and Futures Commission (SFC) will take further steps to enhance liquidity in Hong Kong’s crypto asset market and enable a broader range of products for professional investors.

“The SFC will also set up an accelerator to expedite market innovation,” Chan said. The SFC has already announced plans to allow crypto margin financing and derivatives for professional investors.

Earlier this month, SFC Executive Director of Intermediaries Eric Yip said at a conference that the agency’s priorities for 2o26 center on market quality rather than rapid expansion.

“[This] year’s focus is on liquidity — cultivating market depth, strengthening price discovery, and building investor confidence through a strategic blend of expanded access and responsible product innovation,” Yip said at the time.

Tokenization

Tokenization of traditional finance instruments is another key pillar of Hong Kong’s crypto strategy.

Chan said the government will issue guidance clarifying that registers of debenture holders can be maintained on blockchains. The Hong Kong government will also explore electronic signatures for tokenized bond issuance, Chan said.

Meanwhile, the Hong Kong Monetary Authority, the city’s de facto central bank, will continue upgrading its EnsembleTX platform — the pilot phase of its wholesale central bank digital currency (CBDC) project launched last November, according to Chan. The system is designed to enable 24/7 real-value settlement of tokenized deposits and digital assets and to strengthen cross-border interoperability standards.

On the regulatory front, Chan noted that Hong Kong will amend its Inland Revenue Ordinance over the next two years to implement the OECD’s Crypto Asset Reporting Framework and updated Common Reporting Standard, aligning the city with emerging global tax transparency rules for crypto assets.