Hong Kong Tightens Grip on Stablecoins with New Licensing Regime
The HKMA says stablecoin licences may be issued early 2026, not this year as expected. The new bill takes effect August 1, and only a handful of licences will be granted in the first batch.

Hong Kong is moving ahead with its stablecoin regulatory framework, as the Hong Kong Monetary Authority (HKMA) announced that it will likely issue the first batch of stablecoin licences in early 2026. This follows the passing of the city’s stablecoin bill, which will take effect on August 1, 2025.
During a media briefing on Tuesday, HKMA Deputy Chief Executive Darryl Chan said authorities will only grant a handful of licences in the initial phase. The announcement came as a surprise to some market participants who had expected licences by 2025. However, the HKMA emphasized a cautious and phased rollout to ensure the long-term ability of Hong Kong’s digital asset ecosystem.
HKMA Chief Executive Eddie Yue has previously affirmed the authority’s goal of positioning Hong Kong as a trusted global hub for digital assets, while implementing robust safeguards. The new stablecoin regime plays a central role in that strategy.
Hong Kong Sets Application Deadline Set for August 31
The HKMA urged interested institutions to submit their licence applications before August 31, 2025. To receive feedback from regulators. According to Chan, most of the applicants the authority has spoken with are planning to HKD- or USD-pegged stablecoins. However, stablecoins backed by offshore yuan will face stricter scrutiny, including clear disclosures about their reserve assets and use cases.
In the lead-up to the law’s implementation, crypto-related stocks have seen a sharp rally. Shares of Guotai Junan International (1788.K) have jumped over 450% after the firm secured regulatory approval to offer cryptocurrency trading services in Hong Kong last month.
Despite the market enthusiasm, the KHMA issued a reminder on Tuesday, urging market participants to avoid making exaggerated claims or statements that may lead to unrealistic expectations. It also confirmed that it has issued no stablecoin licences yet.
Moreover, as the August 1 implementation draws even closer, Hong Kong actively sharpens its regulatory posture. The Hong Kong Monetary Authority aims to establish itself as a disciplined and credible jurisdiction for digital assets by enforcing clear rules and strict oversight as it takes its firm stand as a competitive player in the global asset market.