Regulators received 36 applications for stablecoin licenses by September 2025.
Christopher Hui confirmed that the first approvals are expected in early 2026.
Priority is given to strong reserve management and anti-money laundering compliance standards.
A new framework for the custody of virtual assets will be implemented in 2026.
Hong Kong received 36 applications for stablecoin issuance licenses, indicating strong early demand ahead of the new regulatory regime. Officials stated that the first approvals could be issued early next year, as regulators proceed cautiously to balance innovation with financial stability. This update came from the Secretary for Financial Services and the Treasury, Christopher Hui, during his remarks this week as Hong Kong moves forward with one of the most detailed stablecoin regulatory frameworks in Asia.
Submitting 36 applications for stablecoins before the first approval window $DOT
According to the Hong Kong Economic Journal, applications were received before the end of September, shortly after the stablecoin law came into effect in the city in August. The law officially stipulates that stablecoin issuers must obtain licenses before offering their products to the public. Hui confirmed that regulators will not rush to issue approvals, as the first phase will be limited to a small number of licenses. Authorities want to test the system under real conditions before expanding access, which is a similar approach to Hong Kong's previous launch of virtual asset trading platform licenses, where only a limited number of exchanges passed the initial review.
Priority on reserves, price stability, and anti-money laundering $X
The regulators clearly set their priorities. Applications will first be evaluated based on reserve management, price stabilization mechanisms, and anti-money laundering controls. Exporters must prove that stablecoins are fully backed, properly segregated, and subject to strong governance. The goal is to avoid scenarios of redemption failure or price deviation from its reference currency during periods of market stress.
Hui noted that these rules aim not only to protect investors but also to reduce transaction disputes by setting clear compliance standards. In short, fewer gray areas and fewer financial explosions. This stance comes amid broader scrutiny at the regional level, where the Chinese central bank warned last month that stablecoins could facilitate illicit financial activities. Hong Kong appears determined to directly address these risks rather than slow down adoption altogether.
The custody licensing framework will move to the legislative council later $RED
The issuance of stablecoins is only one part of the picture. Hong Kong is also working on setting up a licensing system for digital asset custody services, which is a vital layer for institutions. Hui confirmed that his office is working with the Securities and Futures Commission (SFC) to finalize the framework. The government expects the proposal to reach the legislative council in 2026.
Custodians will face requirements related to asset segregation, security controls, and operational resilience. This is particularly important for banks, fund managers, and stablecoin issuers relying on third-party custody. Once activated, the system will give Hong Kong one of the most comprehensive regulatory frameworks for digital assets in Asia.
Hong Kong bets on regulation as a competitive advantage
Officials presented the effort as thoughtful rather than restrictive. Hui stated that the government has 'carefully designed' Web3 and digital asset policies in line with global standards while maintaining space for experimentation. The message is clear: Hong Kong wants stablecoins, but it wants regulated stablecoins. If approvals begin as early as planned, Hong Kong could become a major hub for compliant stablecoin issuance, especially for companies targeting Asian and overseas markets. Currently, the race is on; 36 applicants are waiting, and only a few will pass the first phase.
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