Hong Kong Begins Stablecoin Licensing and Plans Full Crypto Regulation

Highlights:

• Hong Kong has started issuing stablecoin licenses, and applications are being checked now.
• Christopher Hui said full rules for virtual assets will come this year.
• By 2028, cross-border tax reporting will make crypto transactions more transparent.

Hong Kong has moved into a new phase in its financial development. The Stablecoin Ordinance, effective since August last year, is now fully in action. As a result, the Hong Kong Monetary Authority has started processing license applications from stablecoin issuers, ending the period of unregulated activity. Now, companies issuing fiat-backed stablecoins tied to currencies like the Hong Kong dollar or US dollar must follow strict rules, get approval, and meet regulatory standards. The government says this will protect users, lower risks, and build trust in digital money systems.

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Hong Kong has announced that the Stablecoin Ordinance has come into effect and is currently processing license applications. The regulatory framework for virtual asset trading, custody, advisory, and management services will be submitted to the Legislative Council this year, and…

— Wu Blockchain (@WuBlockchain) January 30, 2026

Hong Kong Moves to Regulate Crypto Industry Beyond Stablecoins

The Legislative Council’s Finance Committee shared the update on January 30. Christopher Hui, Secretary for Financial Services and the Treasury, gave a speech and explained the city’s financial and digital asset plans for the coming years. He pointed out that Hong Kong is in the first year of China’s 15th Five-Year Plan and will keep focusing on innovation, reform, and long-term growth.

He added:

“2026 is the first year of the national “15th Five-Year Plan”. We will continue to uphold the spirit of innovation and reform, proactively align with the national development strategy, and consolidate and enhance Hong Kong’s advantages as an international financial center.”

Stablecoins are just the beginning. Hong Kong is working on a larger framework to cover the whole crypto sector. The draft legislation for trading platforms, custody businesses, advisory businesses, and asset management companies is being prepared. The government announced that these drafts would go to the Legislative Council later this year. After that, exchanges, wallets, and service businesses would operate under clear legal rules rather than guidelines.

The public consultation has already begun for firms and individuals offering crypto investment advice or managing assets. The aim is to make a draft ordinance by the end of the year. If this happens, advisory and management services will be subject to regulation, as is the case with conventional financial services. This is a big step towards integrating digital assets into the conventional financial system of Hong Kong.

Hong Kong to Start Cross-Border Crypto Tax Reporting by 2028

Another key part of the plan focuses on cross-border tax reporting. Hong Kong plans to follow international standards to track crypto transactions between countries. New legislation will align local rules with global norms, and by 2028, the city will start automatically sharing crypto-related tax information with other nations. Officials say this will cut tax evasion, improve transparency, and boost Hong Kong’s standing in the global financial system.

The government views these updates as part of a bigger strategy to strengthen Hong Kong’s role as a global financial hub. Stronger markets, improved digital finance systems, safer infrastructure, and regulated digital assets are all part of the plan. Crypto and stablecoins now have a clear place within this long-term vision. 

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