Hong Kong's Stablecoin Ordinance officially takes effect on August 1st, with the first batch of licenses likely to be issued in 2026.
Hong Kong's stablecoin regulatory regime, the Stablecoin Ordinance, will officially take effect on August 1st, 2025, marking Hong Kong's emergence as the first financial center in Asia to establish a systematic stablecoin regulatory framework.
However, the Hong Kong Monetary Authority (HKMA) has clarified that no stablecoin licenses have yet been issued, and the first batch of licenses is not expected to be issued until early 2026 at the earliest, with extremely limited numbers.
According to regulatory guidelines, institutions interested in applying for a license are advised to conduct preliminary discussions by August 31st, with formal applications requiring complete documentation by September 30th. This cautious pace of licensing reflects the regulator's cautious approach.
HKMA Deputy Chief Executive Chan Wai-min emphasized that the application threshold for a license is "very high," and even entry into the "sandbox testing" does not guarantee approval. The first batch of licenses may only be three or four, with a total of no more than ten.
The ordinance provides a six-month transition period for existing stablecoin issuers, ending on January 31st, 2026. Institutions must submit their applications for confirmation by October 31st, or face a one-month suspension of operations. The HKMA also warned the public to be wary of any institutions claiming to have obtained a license or are in the process of applying, emphasizing that only the list published on its official website is authoritative.
Hong Kong has adopted a relatively strict approach to regulatory requirements. In addition to the standard HK$25 million paid-in capital requirement and full reserve asset backing, anti-money laundering guidelines require licensed institutions to verify the identity of all stablecoin holders, a standard that is more stringent than in most jurisdictions.
The head of the HKMA even frankly stated that they do not expect to achieve large-scale stablecoin adoption in the early stages, preferring to adopt a prudent strategy to gradually advance Hong Kong's digital transformation.
Meanwhile, market reactions are already beginning to emerge. Some institutions are actively preparing license application materials, while projects still in the conceptual stage may be eliminated from the market.
This high-standard, slow-paced approach not only mitigates risks but also lays the foundation for Hong Kong to build a "technically compliant" stablecoin ecosystem. As the global regulatory race intensifies, Hong Kong's framework could become an important reference in Asia.
