Hong Kong Targets March 2026 for First Stablecoin License Issuance

Highlights:

• HKMA plans to issue a limited first batch of stablecoin issuer approvals in March after completing detailed reviews.
• The stablecoin license approvals will depend on use cases and strong AML compliance standards.
• The stablecoin ordinance requires all fiat-backed issuers to hold a license and follow local and cross-border rules.

The Hong Kong Monetary Authority plans to issue its first stablecoin issuer licenses in March 2026. HKMA Chief Executive Eddie Yue shared the timeline during a Legislative Council meeting on Monday. He said the regulator has almost finished reviewing the submitted applications. However, the authority will issue the stablecoin licenses to only a very small number of firms initially. Officials linked the limited rollout to financial stability concerns.

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The HKMA expects to issue the first batch of stablecoin licenses in March. As the review process nears completion, Hong Kong is setting a global benchmark for compliant digital payments.

For StayLP, this is a game-changer. A regulated stablecoin…

— StayLP (@StayLP_World) February 2, 2026

HKMA confirmed it received 36 applications during the first licensing round. Regulators said several applicants lacked sufficient operational readiness. Some firms failed to present workable implementation plans. As a result, the authority requested additional information from selected applicants. These requests focused on operational structure and execution capability. According to Yue, early approvals will be selective in nature. As such, early licensing decisions should not be viewed as validation of any firm.

How HKMA Will Grant a Stablecoin License

HKMA said it is assessing the applications based on the defined use cases. Firms must explain how their stablecoins will function in real transactions, as regulators are focused on payment and settlement activity. Business models without a clear application will face closer review, as officials said speculative designs raise additional questions.

Risk management forms another part of the assessment process. Applicants must show systems that address liquidity and operational risks. HKMA is reviewing governance structures and internal controls. Cybersecurity measures also fall under review. These systems must operate during routine and stressed conditions.

Anti-money laundering requirements apply to all applicants. Firms must demonstrate transaction monitoring systems and also show customer due diligence procedures. HKMA has aligned these checks with the existing financial crime standards. Regulators said AML compliance remains non-negotiable. Reserve backing also factors into approval decisions. Issuers must fully back stablecoins with high-quality assets. Firms must explain redemption processes in detail. Officials said weak reserve structures will not pass review.

Rules That Guide Market Entry

The licensing regime operates under the Stablecoin Ordinance, which took effect last August. The stablecoin law requires any fiat-referenced stablecoin issuer to hold a license. It also applies to firms marketing stablecoins to the public. Overseas-issued stablecoins must meet local requirements for retail use.

Hong Kong uses a same-activity, same-risk, same-regulation method. This framework harmonizes the regulation of stablecoins with the rules of traditional finance. This makes the issuers subject to the same obligations as payment institutions. HKMA also enforces rules covering cross-border activities. These rules apply regardless of issuer location.

A Bloomberg report dated December 22 said Hong Kong may also allow insurers to invest in digital assets. The Hong Kong Insurance Authority has issued a draft proposal with stringent investment terms. The proposal establishes exposure limits and risk control requirements.

According to Bloomberg, the Hong Kong Insurance Authority is proposing a set of new rules to channel insurance capital into assets including cryptocurrencies and infrastructure. Under a presentation document, the regulator would apply a 100% risk capital charge to crypto assets,…

— Wu Blockchain (@WuBlockchain) December 22, 2025

The framework requires a local presence for overseas issuers. Firms must establish an office in Hong Kong. They must also hold reserve assets within the city. Officials said these conditions support effective supervision. Meanwhile, Hong Kong banned stablecoin advertisements, starting on August 1 last year.

HKMA launched a public registry in July 2025. The registry allows users to verify licensed stablecoin issuers. As of Monday, the database remained empty. Entries will appear only after licenses are granted.

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