‘Stablecoin ordinance has taken effect’ – Hong Kong pushes for crypto regulation
Hong Kong has revealed that it has activated licensing for issuers of fiat-based stablecoins amid a broader push for crypto regulatory readability.
Throughout a coverage briefing with the Legislative Council’s Finance Committee, Secretary for Monetary Providers and the Treasury, Christopher Hui, said,
“The Stablecoin Ordinance was formally applied final August, introducing a licensing system for fiat-denominated stablecoin issuers in Hong Kong. The Hong Kong Financial Authority (HKMA) is presently processing related license functions.”
Hui framed crypto as a ‘new progress space’ that would additional reinforce town as a world finance middle.
The official famous that regulators are engaged on the main points of the related regulatory regime for digital asset buying and selling and custody service suppliers, in addition to different points of digital asset markets.
He added,
“The Monetary Providers and the Treasury, and the SFC are additionally additional consulting the general public on establishing a regulatory regime for service suppliers providing recommendation on digital property and digital asset administration service suppliers…”
Moreover, to fight tax evasion within the sector and strengthen anti-money laundering efforts, the official mentioned they have been gathering suggestions on the identical.
Issuer approvals anticipated in Q1
The primary batch record of permitted licensed stablecoin issuers in Hong Kong is anticipated in Q1 2026, according to town’s Monetary Secretary Paul Chan Mo-po.
In the course of the annual World Financial Discussion board in Davos, the finance chief billed digital property as,
“Monetary innovation that we must always embrace proactively. We additionally consider digital property ought to serve the actual economic system.”
Mo-po pressed that town should construct robust guardrails to mitigate crypto market-related dangers that would undermine broader monetary stability, the general market integrity, and shield buyers.
Certainly, Hong Kong’s stablecoin invoice requires strict requirements for reserves, redemption, and threat measures.
Equally, it tightened guidelines on custodians and sellers, laying the groundwork for a broader crypto regulatory framework.
The development mirrors regulatory approaches within the U.Ok. and the usto provide clear guidelines for the rising sector. Notably, the U.S. handed its stablecoin invoice final 12 months, marking a major step for digital property.
Nevertheless, the broader market construction invoice, the CLARITY Act, nonetheless faces uncertainty. Contentious points, akin to yield and tokenized shares, proceed to stall its progress.
Within the U.Ok., Parliament just lately launched a stablecoin inquiry to overview the proposed regulatory regime that’s set to be finalized by the top of 2026.
Ultimate Ideas
- Hong Kong is gearing as much as record its first batch of permitted and licensed stablecoin issuers in Q1.
- Prime officers consider crypto is a ‘new progress’ space to place Hong Kong as a world finance middle.
