Catenaa, Monday, March 02, 2026- Hong Kong plans to grant its first stablecoin issuer licenses this month and introduce legislation for crypto asset dealers and custodians later this year, Financial Secretary Paul Chan said Wednesday.
The licensing regime, already in place, will allow regulated issuers to explore applications in a compliant, risk-controlled manner. Chan confirmed that approvals for fiat-backed stablecoin issuers are expected in March.
Beyond stablecoins, Hong Kong aims to expand oversight to digital asset dealing, covering the regulated buying, selling, or exchanging of virtual assets, and custodian services. The Securities and Futures Commission (SFC) is focused on enhancing liquidity and enabling a wider range of products for professional investors, including crypto margin financing and derivatives. The SFC will also launch an accelerator to speed innovation.
Tokenization of traditional financial instruments is a key priority. Guidance will allow debenture registers to be maintained on blockchains, while electronic signatures may be adopted for tokenized bond issuance. The Hong Kong Monetary Authority continues to develop its EnsembleTX platform, a pilot for its wholesale central bank digital currency (CBDC), designed for 24/7 real-value settlement of tokenized deposits and cross-border digital assets.
On tax compliance, Hong Kong will amend the Inland Revenue Ordinance over the next two years to implement the OECD’s Crypto Asset Reporting Framework and updated Common Reporting Standard, aligning with global standards for crypto asset transparency.
The combined efforts aim to strengthen Hong Kong’s regulatory framework, promote market liquidity, and position the city as a hub for tokenized finance and compliant stablecoin issuance.
