The Hong Kong Monetary Authority (HKMA) officially launched its stablecoin licensing regime on July 29, with regulations taking effect August 1. The framework requires stablecoin issuers operating in or marketing to Hong Kong to comply with new guidelines: 'Guidelines on the Supervision of Licensed Stablecoin Issuers' and 'Guidelines on Combating Money Laundering and Counter-Terrorist Financing'. Issuers must submit preliminary applications by August 31 for early feedback, with complete applications due by September 30.
HKMA Deputy Chief Executive Darryl Chan revealed the regulator will issue only a limited number of licenses initially, with approvals potentially starting in 2026. All licensed stablecoins must be fully backed by high-quality liquid assets, and false claims about licensing status now carry criminal penalties. The HKMA confirmed no licenses have been granted as of July 29 and will publish an official list of approved issuers. A transitional period allows existing operators to align with requirements.
This initiative aims to ensure only transparent, well-capitalized entities operate while positioning Hong Kong as a regulated digital finance hub. The framework may also pave the way for future central bank digital currency (CBDC) developments, according to HKMA statements.