Hong Kong’s Stablecoin Crackdown Goes Live Aug. 1—But Full Licensing Won’t Hit Until 2026 (Regulators Warn: Don’t Believe the Hype)
Hong Kong just dropped the hammer on stablecoins—but left the door wide open for chaos.
The city's financial regulators finalized sweeping stablecoin rules effective August 1, 2025. Yet in a move that reeks of bureaucratic foot-dragging, full licensing won't land until 2026. That's right—12+ months of regulatory purgatory where crypto firms operate in legal limbo.
Key takeaways:
- Immediate compliance required for issuers
- Licensing delayed until at least 2026
- Regulators explicitly warned against 'hype-driven adoption'
The delayed timeline creates a bizarre gap where projects must follow new rules but can't get official approval. Meanwhile, the government's warning about hype feels particularly rich coming from the same jurisdiction that's been aggressively courting crypto businesses.
One thing's clear: Hong Kong wants the crypto crown without the volatility. Whether that's regulatory genius or just another case of financial theater remains to be seen.
The Hong Kong Monetary Authority (HKMA), the city’s de facto central bank, has finalized its regulatory framework for stablecoin issuers, publishing two sets of guidelines that will come into effect on August 1. While the framework is now in place, the HKMA is expected to issue the first batch of stablecoin licences in early 2026, and has called on potential issuers to submit their applications by the end of September.
Hong Kong Pushes Following Genius Act
On Tuesday, the HKMA released finalized guidelines and consultation conclusions outlining upcoming rules for stablecoin oversight. The documents cover supervision of licensed issuers, as well as AML and CTF requirements. As part of the new framework, Hong Kong will also launch a public registry of licensed stablecoin issuers.
“In the future, the public may refer to the register of licensed stablecoin issuers as shown on the HKMA’s website,” the regulator said.
At a media briefing, the Hong Kong Monetary Authority (HKMA) said the city’s stablecoin regulations will take effect this Friday, August 1. However, the first licences for stablecoin issuers are now expected to be granted in early 2026.
Many in the market had hoped the licences WOULD be issued this year, but the HKMA’s comments suggest it’s taking a more cautious approach.
The regulator added, “Considering Hong Kong’s well-established systems, we do not expect to achieve large-scale (stablecoin adoption) immediately in the early stages. Instead, we aim to progress step by step, gradually driving the digital transformation of Hong Kong.”
The HKMA is encouraging anyone interested in applying for a stablecoin license to get in touch with the regulator by August 1. To be considered for the first round of approvals, applicants must also submit their full applications by September 30.
The HKMA Warns Against Hype and Scams
The HKMA made it clear that, as of now, no stablecoin licences have been granted, and cautioned the public against trusting individuals or companies claiming to be licensed or regulated in Hong Kong.
The new guidelines require stablecoin issuers to follow rules on managing reserves, issuing and redeeming coins, handling risks, and running their operations properly.
To prevent money laundering, licensed issuers must check customers’ identities, manage wallet risks, follow rules for tracking transfers, and keep an eye on transactions.
The HKMA also said it will carry out checks and investigations if the rules are broken and can take action against those who don’t comply. Authorities also advised skepticism toward those saying they are in the process of applying, stressing that anyone holding unlicensed stablecoins is doing so at their own risk.
The HKMA expressed concern over growing HYPE in the market. Chief Executive Eddie pointed to a surge in excitement around stablecoins that had triggered sharp increases in trading activity and stock prices, moves the regulator believes were largely unwarranted.
