How does Hong Kong regulate stablecoins?
Since 1 August 2025, issuing a currency-backed stablecoin in Hong Kong needs a licence from the Hong Kong Monetary Authority. Here is what the law asks of issuers, and what it means for holders. Status as of October 2026.
Education only, not investment, tax or legal advice. Crypto-assets are high-risk — risk disclosure.
The short answer
Hong Kong's Stablecoins Ordinance (Cap. 656) took effect on 1 August 2025. Issuing a fiat-referenced stablecoin in Hong Kong, or a Hong Kong dollar one anywhere, needs a licence from the Hong Kong Monetary Authority (HKMA), with full reserve backing and redemption at par.
Key takeaways
- The Stablecoins Ordinance (Cap. 656) and the HKMA's licensing regime took effect on 1 August 2025.
- A licence is needed to issue a fiat-referenced stablecoin in Hong Kong, to issue one referencing the Hong Kong dollar outside Hong Kong, or to actively market such issuance to the Hong Kong public.
- Licensed issuers need at least HK$25 million of paid-up share capital and reserves worth at least the par value of all coins in circulation.
- Holders have a right to redeem at par, normally within one business day of a valid request.
- On 10 April 2026 the HKMA granted the first two licences, to Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited.
What does Hong Kong's Stablecoins Ordinance cover?
Hong Kong's regime for stablecoin issuers took effect on 1 August 2025 under the Stablecoins Ordinance (Cap. 656), and the HKMA is the licensing authority1. The HKMA states that issuing fiat-referenced stablecoins is a regulated activity in Hong Kong and needs a licence1.
The ordinance defines a stablecoin broadly, as a cryptographically secured digital representation of value2. The licensing rules bite on specified stablecoins: those whose stable value refers wholly to one or more official currencies2. In practice that means fiat-referenced stablecoins, such as coins designed to track the US dollar or the Hong Kong dollar2. Our CBDC explainer shows how this privately issued money differs from central bank money.
Activities that need an HKMA licence (Stablecoins Ordinance, section 5)
| Activity | Needs a licence? |
|---|---|
| Issuing a fiat-referenced stablecoin in Hong Kong in the course of business | Yes2 |
| Issuing, outside Hong Kong, a stablecoin that references the Hong Kong dollar wholly or partly | Yes2 |
| Actively marketing either activity to the Hong Kong public, from Hong Kong or elsewhere | Yes2 |
| Holding a stablecoin for your own use | Not a licensed activity, but unlicensed coins are held at your own risk3 |
What must a licensed issuer hold in reserve?
The HKMA's explanatory note on licensing sets the financial floor. An issuer needs paid-up share capital of at least HK$25,000,000, or an approved equivalent2.
- Full backing. The market value of the reserve pool must at all times be at least equal to the par value of the stablecoins in circulation, with appropriate over-collateralisation2.
- Quality. Reserve assets must be high quality and highly liquid, with minimal investment risk2.
- Separation. Reserves must be segregated from the issuer's other assets, with an effective trust arrangement in place2.
Worked example
What full backing means in numbers
Hypothetical figures. If an issuer has 500 million Hong Kong dollar coins in circulation, each worth HK$1 at par, its reserve pool must be worth at least 500,000,000 × HK$1 = HK$500 million at market value, at all times2. If the reserve assets fell to HK$495 million, it would be HK$5 million short of the requirement. Its separate HK$25 million of capital is not part of that pool.
Can holders redeem a Hong Kong stablecoin at face value?
Yes, for licensed coins. The explanatory note gives holders a right to redeem at par value2. Valid redemption requests should be honoured as soon as practicable and, unless the HKMA approves otherwise, processed within one business day of receipt2.
That right runs against the licensed issuer. If you hold a coin from an issuer that is not licensed, the HKMA's warning applies: members of the public who hold unlicensed stablecoins do so at their own risk3.
Figure · Redeeming a licensed stablecoin
- 01Holder asks to redeema valid request to the issuer
- 02Issuer checks requestas soon as practicable
- 03Paid at par valuenormally within 1 business day
Who has a licence so far, and who may sell the coins?
No licence had been granted when the regime began; the HKMA said so on 29 July 20253. On 10 April 2026 it granted the first two: to Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited4. Licensees are listed on the HKMA's public register1.
A licensed issuer may only use a permitted offeror to offer its specified stablecoins2. Permitted offerors include licensees, authorized institutions (banks), stored value facility licensees, virtual asset trading platforms licensed by the Securities and Futures Commission, and SFC Type 1 licensed corporations2.
How to check a stablecoin before you use it
- 1
Find the issuer
Look for the legal name of the issuing company, not just the coin's ticker.
- 2
Search the HKMA register
Check the Register of Licensed Stablecoin Issuers on the HKMA website1.
- 3
Check who is selling it
Buy through a regulated channel, as the HKMA advises4. Our guide on how to check a regulated firm covers other registers.
How do Hong Kong's rules compare with the US and EU?
The United States and the European Union have their own stablecoin laws, and the details differ from Hong Kong's, so a coin that is licensed in one place is not automatically licensed in another. For the US approach, see our GENIUS Act guide; for the EU, see MiCA explained.
Hong Kong stablecoin rules in brief (as of October 2026)
| Question | Hong Kong answer |
|---|---|
| Which coins are covered? | Specified stablecoins referencing official currencies2 |
| Does a foreign issuer need a licence? | Yes if its coin references the Hong Kong dollar, or if it actively markets issuance to the Hong Kong public2 |
| Capital floor | HK$25 million paid-up share capital2 |
| Reserves | At least par value of coins in circulation, segregated in trust2 |
| Redemption | At par, normally within one business day2 |
What mistakes do people make about Hong Kong stablecoins?
Common beginner mistakes
Trusting a claim of being licensed
Falsely claiming to be a licensee or an applicant is an offence, and the HKMA warns the public to be wary of such claims3. Check the register yourself1.
Assuming every dollar coin is covered
Redemption rights and reserve rules apply to licensed issuers. Unlicensed coins are held at your own risk3.
Confusing capital with reserves
The HK$25 million capital floor is separate from the reserve pool that backs each coin2.
Forgetting scams follow licences
The HKMA reminded the public to stay alert to fraud linked to licensees and their coins after the first licences were granted4.
Frequently asked questions
When did Hong Kong's stablecoin law take effect?
On 1 August 2025, under the Stablecoins Ordinance (Cap. 656)1.
Which companies hold Hong Kong stablecoin issuer licences?
Does a US dollar stablecoin need a Hong Kong licence?
How fast must a licensed issuer pay out a redemption?
As soon as practicable and, unless the HKMA approves otherwise, within one business day of receiving a valid request2.
The bottom line
Hong Kong has required a licence to issue currency-backed stablecoins since 1 August 2025, with a HK$25 million capital floor, full and segregated reserves, and redemption at par. As of October 2026 only two issuers had been licensed, so check the HKMA register before trusting any coin or any claim of licence.
Sources
- Regulatory Regime for Stablecoin Issuers — Hong Kong Monetary Authority, 2026 Primary source
- Explanatory Note on Licensing of Stablecoin Issuers — Hong Kong Monetary Authority, 2025 Primary source
- Implementation of regulatory regime for stablecoin issuers (press release, 29 July 2025) — Hong Kong Monetary Authority, 2025 Primary source
- Granting of stablecoin issuer licences (press release, 10 April 2026) — Hong Kong Monetary Authority, 2026 Primary source
How we checked this page: every figure above links to the numbered source it came from. Spotted an error? Tell the desk — see our editorial policy.
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