Hong Kong to Issue First Stablecoin Licenses in Q1, Boosting Crypto Push
Hong Kong is preparing to award its first stablecoin issuer licenses in the first quarter of the year, as part of its efforts to establish itself as a regional hub for digital assets. According to Hong Kong Finance Minister Paul Chan, the city’s approach to crypto regulation remains “responsible and sustainable,” as reported by the South China Morning Post.
The move is expected to advance Hong Kong’s digital asset strategy, which includes regulated stablecoin issuance, licensed trading platforms, and tokenized financial products. Chan views stablecoins as a key component of a broader push to build a complete digital asset ecosystem in Hong Kong. The city is seeking to maintain its status as a global financial hub, with digital finance being a strategic growth pillar.
Hong Kong’s Stablecoin Licensing System
The stablecoin licensing system, adopted in 2025, sets strict requirements for fiat-referenced stablecoin issuers. These include rules on reserve protection, redemption rights, governance, and risk management, reflecting regulators’ focus on financial stability and consumer protection. The rules are designed to ensure that stablecoin issuers operate in a responsible and sustainable manner, providing a secure and reliable platform for users.
Issuers must adhere to these standards to obtain a license, which will be awarded in the first quarter of the year. The move is expected to attract more investors and users to the digital asset market in Hong Kong, boosting the city’s position as a regional hub for digital assets.
Crypto Trading Platform Framework
Hong Kong’s crypto trading platform framework is already active, with 11 virtual asset trading platforms having received licenses so far. Approved operators include OSL, HashKey, and Bullish, according to the regulator’s public disclosures. The framework is designed to provide a secure and reliable platform for trading digital assets, with strict rules and regulations in place to protect users.
Beyond trading and stablecoins, Hong Kong is also pushing deeper into tokenization. In November 2025, the Hong Kong Monetary Authority launched a pilot project under Project Ensemble to test real-value transactions with tokenized deposits and digital assets involving major banks and asset managers.
Regulatory Developments
Regulators are discussing further proposals that would introduce new licensing systems for crypto asset trading and advisory and management services. The Hong Kong Securities and Futures Professionals Association has warned that stricter virtual asset management rules could deter traditional asset managers by increasing compliance costs and slowing institutional participation.
In a submission to the Securities and Futures Commission, the association argued against removing the long-standing “de minimis” exemption for managers with Type 9 licenses, which currently allows limited crypto exposure without triggering a separate virtual asset management license. The proposal comes as Hong Kong expands its digital assets framework and authorities deliberate on new licensing regimes for virtual asset trading and advisory and management services.
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