Hong Kong has officially activated its Stablecoin Ordinance, with the Hong Kong Monetary Authority (HKMA) now actively reviewing license applications from fiat-denominated stablecoin issuers. The ordinance, which came into effect in August 2024, establishes a licensing system requiring issuers to meet stringent capital, operational, and risk management standards. This move positions Hong Kong as one of the few major global financial hubs with a formal regulatory pathway for stablecoins.
Secretary for Financial Services and the Treasury, Christopher Hui, confirmed the development during a Legislative Council Finance Committee policy briefing on January 30, 2026. He further announced that a broader, comprehensive regulatory framework for virtual assets will be submitted to the Legislative Council later this year. This framework will cover virtual asset trading platforms, custody services, asset management, and advisory roles, aiming to create a unified governance system to reduce uncertainty and attract institutional participation.
Looking further ahead, Hong Kong has committed to implementing the OECD's Crypto-Asset Reporting Framework (CARF). Starting in 2028, the city will begin the automatic exchange of cross-border tax information related to virtual assets with other jurisdictions. This initiative is designed to align Hong Kong with global tax transparency standards, combat tax evasion, and bolster trust in its virtual asset ecosystem. Public consultations on the related legislative proposals are currently underway.
