January 23, 2026
By Our Correspondent
The city tightens the rules even as it courts crypto capital
Hong Kong plans to issue its first batch of stablecoin licences in the first quarter of this year, underscoring its ambition to become a regional hub for digital finance while keeping a firm regulatory hand on the tiller.
Speaking at the World Economic Forum in Davos, the cityâs financial secretary, Paul Chan, said Hong Kongâs approach to crypto assets remained âresponsible and sustainableâ.
Stablecoins, he suggested, would form the backbone of a broader ecosystem encompassing tokenised assets, exchanges and other forms of digital financeâan increasingly important pillar of the cityâs economic strategy as competition from other financial centres intensifies.
That strategy rests heavily on regulation. Under Hong Kongâs stablecoin licensing framework, due to take effect in 2025, issuers of fiat-referenced stablecoins must meet strict requirements on reserves, redemption and risk management. The aim is to foster innovation without repeating the excesses that have periodically roiled global crypto markets.
Efforts to corral trading platforms are already under way. The Securities and Futures Commission has so far licensed 11 virtual-asset exchanges. OSL, HashKey and Bullish are among the firms that have secured approval, signalling official backing for a tightly supervised marketplace.
Beyond trading, Hong Kong is pressing ahead with tokenisation. In November 2025 the Hong Kong Monetary Authority launched Project Ensemble, a pilot programme involving major banks and asset managers to test real-world transactions using tokenised deposits and digital assets. The initiative reflects a belief among policymakers that blockchain-based finance could enhance efficiency in mainstream markets, not merely speculative ones.
Yet the regulatory push is not without critics. Authorities are seeking public feedback on proposals to introduce additional licensing regimes for crypto-related management, advisory and dealing services. This week the Hong Kong Securities and Futures Professionals Association warned that tougher rules for virtual-asset management could deter traditional asset managers, raising compliance costs and slowing institutional adoption.
For Hong Kong, the challenge is familiar: how to balance openness with oversight. Whether its cautious embrace of stablecoins can deliver both credibility and competitiveness will soon be put to the test.
