Hong Kong Sets Timeline for Stablecoin Licensing and Broader Crypto Oversight

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Hong Kong authorities will begin issuing stablecoin issuer licenses next month, marking a significant step in the city’s efforts to position itself as a regulated digital asset hub. The announcement came from Financial Secretary Paul Chan during his 2026-27 budget speech, where he also outlined plans for additional crypto legislation later this year.

Chan said a licensing framework for stablecoin issuers is already in place, with regulators aiming to support licensed companies as they test and deploy stablecoin applications under clear compliance and risk controls. The first batch of licenses covering fiat-backed stablecoin issuers is expected to be approved in March.

The government also confirmed it will introduce a bill in 2026 to regulate digital asset dealers and custodians. This would expand Hong Kong’s supervisory perimeter beyond trading venues and stablecoin operators. Under local rules, digital asset dealing encompasses business activities such as over-the-counter trading and other forms of regulated buying and selling of virtual assets.

Enhancing market liquidity is another central objective. Chan said the Securities and Futures Commission will roll out further measures to improve liquidity conditions in the crypto market and allow a wider selection of products tailored to professional investors.