Hong Kong will approve its first fiat-referenced stablecoin issuer licenses in March. The move formalizes a regulatory track that could position the city as Asia’s most structured hub for compliant digital dollar issuance.
Financial Secretary Paul Chan announced the timeline in his 2026–27 budget speech. He said the government has already implemented a licensing regime for stablecoin issuers and will continue facilitating compliant use cases under risk-controlled conditions. The first approvals are expected next month, with further legislation covering digital asset dealers and custodians planned later this year.
Will Licensing Expand Hong Kong’s Crypto Liquidity?
The new bill would extend regulation beyond trading platforms and stablecoins to over-the-counter dealers and custody providers. In Hong Kong, digital asset dealing refers to regulated buying, selling, or exchanging of virtual assets as a business. The Securities and Futures Commission (SFC) also plans steps to deepen liquidity and broaden product access for professional investors.
Liquidity has become the stated priority. Earlier this month, SFC Executive Director of Intermediaries Eric Yip said the agency’s 2026 focus centers on “market depth, strengthening price discovery, and building investor confidence” rather than rapid expansion. The SFC has already announced plans to permit crypto margin financing and derivatives trading for professional investors.
Chan said the SFC will establish an accelerator to expedite market innovation. The government will also issue guidance clarifying that debenture holder registers may be maintained on blockchains and explore electronic signatures for tokenized bond issuance. Meanwhile, the Hong Kong Monetary Authority will continue upgrading its EnsembleTX platform, the pilot phase of its wholesale central bank digital currency project launched last November, designed for 24/7 settlement of tokenized deposits and digital assets.
Still, regulatory alignment extends beyond market structure. Chan confirmed that Hong Kong will amend its Inland Revenue Ordinance over two years to implement the OECD’s Crypto Asset Reporting Framework and updated Common Reporting Standard. As the first licenses are granted in March, market participants will watch which issuers secure approval and whether liquidity measures translate into measurable trading depth.
