Hong Kong: No Stablecoin Licences Yet, First May Not Arrive Until 2026

The Hong Kong stablecoin regulatory regime is set to go live on August 1, but so far, the Monetary Authority has issued no licences.

Hong Kong Stablecoin Licences May Arrive Early 2026

In a press release, the Hong Kong Monetary Authority (HKMA) has shared explanatory notes and guidelines related to the new stablecoin regulatory regime that will be implemented at the start of August.

Hong Kong’s stablecoin bill, officially known as Stablecoins Ordinance, was passed by the Legislative Council back in May. The law mandates that any entity seeking to issue fiat-referenced stablecoins (FRSs) within the city must obtain a licence from the HKMA.

The bill is set to be in effect from August 1, but so far, no issuer has received a licence from the regulator. “In future, the public may refer to the register of licensed stablecoin issuers as shown on the HKMA’s website,” read the press release. Naturally, the list is empty for now.

The regulator cautioned:

Members of the public are advised to stay vigilant to any persons who claim to be regulated or licensed stablecoin issuers in Hong Kong, as well as those who claim to be applying for a licence.

HKMA has encouraged parties interested in becoming an issuer to contact the regulator for feedback by August 31. It has also said that those who wish to be considered early can submit an application by September 30.

The first batch of licences may not be granted until early next year, as reported by Reuters. Also, Darryl Chan Wai-man, deputy chief executive at HKMA, has revealed that only a handful of FRS issuers will get in during this initial batch.

As previously reported by Bitcoinist, HKMA CEO Eddie Yue has cautioned against excessive speculation brewing in the sector ahead of the Stablecoins Ordinance, noting that many applicants are still in the conceptual phase. On that note, the Hong Kong regulator said in the press release:

The HKMA would like to remind market participants to exercise due caution in their public communications, as well as refrain from making statements that could be misinterpreted or create unrealistic expectations.

One clause that stands out in the anti-money laundering (AML) guidelines is that FRS issuers might be required to verify the identity of all stablecoin holders, an approach notably stricter than most other jurisdictions.

“Considering Hong Kong’s well-established systems, we do not expect to achieve large-scale [stablecoin adoption] immediately in the early stages,” Chan told South China Morning Post. “Instead, we aim to progress step by step, gradually driving the digital transformation of Hong Kong.”

Bitcoin Price

At the time of writing, Bitcoin is floating around $117,800, down 1% in the last week.