Hong Kong Activates Stablecoin Law as HKMA Begins Licensing Reviews

Overview

• Hong Kong’s Stablecoin Ordinance is now in force as the transition period concludes on January 31, with the HKMA formally assessing issuer applications.
• Thirty-six firms have applied for licenses under the new regime, according to industry reports, signaling strong market interest.
• The rules mandate full reserve backing, par‑value redemption on demand, segregation of reserves from corporate funds, and restrict reserve assets to short‑term deposits and government securities.
• The framework covers fiat‑denominated issuers, including those offering Hong Kong dollar‑linked coins and global firms operating in the city.
• Authorities are advancing complementary regulations for trading, custody, advisory and asset management, and plan to join international crypto tax information exchange in 2028.