Hong Kong Set to Issue First Batch of Stablecoin Licenses in March – Here’s What It Means for Crypto
Hong Kong’s financial regulators are gearing up to greenlight a select few stablecoin issuers next month—a move that could reshape Asia’s digital asset landscape overnight.
Why This Matters
Limited licenses mean only the strongest players get a seat at the table. Think of it as a regulatory filter—keeping out the shaky projects while giving credible issuers a stamp of approval. Hong Kong isn’t just opening the door; it’s deciding who gets to walk through first.
The Ripple Effect
Approved stablecoins could unlock institutional capital, fuel DeFi activity, and offer a clear alternative to the usual banking gatekeepers. It’s a direct challenge to the slow-moving, fee-heavy legacy system—because nothing says progress like cutting out the middleman.
What’s Next?
Watch for which companies make the cut. Their success—or failure—will set the tone for how other regulators approach digital currencies. One cynical take? Traditional finance will call it risky right up until they launch their own branded stablecoin.
HKMA To Grant Limited Stablecoin Licenses Soon
On Monday, the Hong Kong Monetary Authority (HKMA)’s Chief Executive, Eddie Yue, announced that the regulatory agency is preparing to grant the first batch of the highly anticipated stablecoin licenses next month.
At a Legislative Council meeting, Yue affirmed that the financial authority expects to issue a “very small number” of stablecoin issuer licenses in March, according to a Reuters report.
In August, the HKMA enacted the Stablecoins Ordinance, which directs any individual or entity seeking to issue any fiat-referenced stablecoin (FRS) in Hong Kong, or any Hong Kong Dollar (HKD)-denominated token, to obtain a license from the regulator.
Local news outlets have reported that more than 30 companies have applied for the license, including the overseas arm of Chinese mainland financial technology giant Ant Group and logistics technology firm Reitar Logtech.
In December, legal experts suggested that Hong Kong’s ambitions to become a key regulated hub for stablecoins could be clouded by the People’s Bank of China’s explicit crackdown on the sector.
As reported by Bitcoinist, top financial regulators affirmed that stablecoins don’t qualify as legal tender in the mainland, which could delay the original early 2026 schedule and affect the HKMA’s approval of projects involving the yuan or mainland Chinese institutions.
Nonetheless, Hong Kong’s Financial Secretary, Paul Chan Mo-po, recently confirmed the regulators’ plan to grant stablecoin issuers licenses in the first quarter of the year at the World Economic Forum in Davos.
During a Monday media briefing, HKMA’s Chief Executive reportedly noted that their application review process is NEAR its completion. Yue also highlighted that the regulator is focusing on use cases, risk management, anti-money laundering (AML) measures, and asset backing.
Moreover, he asserted that licensed issuers must comply with local regulations for cross-border activities, but added that “mutual recognition arrangements with other jurisdictions could be explored in the future.”
Hong Kong Continues Crypto Regulation Efforts
Hong Kong has been actively developing a comprehensive framework to support the expansion of the digital assets industry as part of its long-term strategy to become a global crypto hub.
Notably, financial authorities have been exploring rules to enable insurance companies to invest in cryptocurrencies and the infrastructure sector. In addition, the jurisdiction is among the 76 markets committed to implementing the Organisation for Economic Co-operation and Development’s (OECD) new global standard for exchanging tax information related to crypto assets.
The upcoming crypto reporting framework, the Crypto Asset Reporting Framework (CARF), is intended to bring crypto users across borders under global tax transparency rules, thereby preventing tax evasion. Hong Kong is set to begin its first cross-border exchanges of crypto reporting data in 2028.
However, the Hong Kong Securities & Futures Professionals Association (HKSFPA) has expressed its concerns about the implementation of the OECD’s CARF and the related amendments made to Hong Kong’s Common Reporting Standard (CRS).
The group noted that it mostly supports the proposals, but urged regulators to ease the record-keeping requirements for dissolved entities and the uncapped per-account penalties for minor technical errors. The Professionals Association warned that these elements of the CARF and CRS amendments could create operational and liability risks for market participants.
