Hong Kong Rolls Out Stablecoin Licensing to Dominate 2026 Crypto Market

On January 30, Hong Kong officially launched its Stablecoin Ordinance, introducing a licensing system for fiat-backed stablecoin issuers. The Hong Kong Monetary Authority (HKMA) is actively processing applications under the new framework, marking a key step in regulating digital assets in the city.

The Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) are developing comprehensive regulations for virtual asset trading, custody, and advisory services.

These proposals should be submitted to the Legislative Council in 2026. The regulations will help Hong Kong become an even bigger international financial center while ensuring that virtual asset activities are properly regulated.

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Asset Management Tax Benefits, REIT Framework, and Stablecoins

The Hong Kong financial hub continues to expand. It will assist mainland technology companies in raising funds by listing in Hong Kong, enhance rules for dual-class shares, and examine ways to accelerate stock settlement from T+2 to T+1.

Foreign companies are encouraged to list in Hong Kong once again, and Chinese concept stocks are being guided to return to the market.

Regarding asset management, the government will make proposals to enhance tax advantages for funds and family offices. It is also developing a bill on REITs’ repurchase and privatization.

To support infrastructure development, the capital adequacy requirement for insurance funds will be reduced. A shipping risk pool will provide coverage for vessels operating in Hong Kong and mainland China.

The SFC is considering developing an electronic trading platform for fixed income. Linking with mainland markets will enhance offshore bond futures and interest rate derivatives.

New Growth Areas: Gold, Fintech, and Sustainable Finance

Hong Kong also aims to become a regional gold hub and hopes to store over 2,000 tons of gold in three years.

There will be cooperation with Shenzhen and Shanghai to trade the gold properly, and more London Metal Exchange-approved warehouses will be constructed in Hong Kong. Gold trading will increase as there will be closer cooperation with mainland exchanges.

Green finance is given emphasis. Consultations include sustainable certification and participation in the carbon market in the Greater Bay Area.

Public welfare measures include reforms in MPF, stricter regulations for licensed money lenders, and tax concessions for firstborn children. The government will allocate HK$30 billion in the next two to three years for infrastructure development to support the local economy.

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