HKMA Finalizes Stablecoin Regime, First Licenses 2026

Hong Kong's new stablecoin regulatory framework, targeting fiat-referenced stablecoin issuers, will take effect on August 1, 2024, introducing strict licensing and compliance requirements. The Hong Kong Monetary Authority (HKMA) will accept applications from August 1 to September 30, prioritizing robust anti-money laundering, reserve management, and risk controls. No licenses have been issued yet, and the first approvals are expected in early 2026, with only a limited number of initial licenses to be granted. The HKMA has warned the public against false claims of regulatory approval and recent speculative activity. A public registry of licensed issuers will be established, and existing operators are required to transition to the new rules. The framework aims to enhance transparency, consumer protection, and Hong Kong’s standing as a digital asset hub.