Hong Kong Advances Digital Assets with Stablecoin Licenses and Crypto Legislation

Hong Kong's Financial Secretary Paul Chan outlined significant steps in his 2026-27 budget speech to strengthen the city's virtual asset framework. One major highlight is the imminent issuance of the first batch of licenses for stablecoin issuers, which will mark a practical milestone in implementation.

The government has already established a licensing regime for fiat-referenced stablecoin issuers, which took effect last year. Chan confirmed that regulators plan to grant the initial set of licenses next month.

By starting with a limited number of licenses, Hong Kong seeks to build a secure foundation before broader expansion. This cautious approach prioritizes issuers demonstrating genuine real-world applications and robust compliance standards.