Hong Kong to Issue First Stablecoin Licenses in Q1 as Digital Asset Hub Push Accelerates
Hong Kong will grant its first stablecoin issuer licenses by March 2024, implementing strict reserve and risk management requirements for approved operators. The MOVE positions the city as a regional leader in regulated digital assets amid intensifying global competition.
Financial Secretary Paul Chan confirmed the timeline at Davos, emphasizing stablecoins as one component of a broader ecosystem including tokenized assets and licensed trading platforms. The licensing framework, finalized in 2025, mandates full fiat backing and redemption guarantees.
This regulatory push coincides with Hong Kong's strategic pivot toward digital finance as it battles Singapore and Dubai for dominance in Asia's cryptocurrency markets. Market observers note the policy could benefit compliant stablecoins like USDC and DAI while pressuring unregulated alternatives.
