Hong Kong Targets Global Crypto Hub Status with Launch of Stablecoin Licensing

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Today, Hong Kong officially rolled out its stablecoin licensing regime, marking a significant step toward its goal of becoming a global digital asset hub. The legislation, passed by Hong Kong’s Legislative Council in May, mandates that any entity issuing fiat‑referenced stablecoins must hold a licence from the Hong Kong Monetary Authority (HKMA). The regulatory framework imposes high capital and reserve standards, risk controls, redemption rights, and anti‑money‑laundering (AML) protocols. 

While the licensing regime is effective as of August 1, 2025, the HKMA expects the first approvals in early 2026, with only a “handful” in the initial cohort, as confirmed by Deputy Chief Executive Darryl Chan.

Investor enthusiasm surged over the summer. In July alone, at least ten Hong Kong‑listed firms raised over US$1.5 billion to develop stablecoin, digital asset, and blockchain payment infrastructure amid hopes the licensing regime could lead to market growth. Tech giants like Ant International have already announced plans to apply for a license.

HKMA has previously emphasized a cautious approach, focusing on credible applications and warning against speculative claims. Firms interested in applying for a license should contact the HKMA via email by August 31, 2025, for feedback. Interested parties that are ready and wish to be considered early should apply by September 30, 2025, for the first wave of licensing in 2026.