The Hong Kong government stated in a written response to the Legislative Council that the Hong Kong Monetary Authority will grant stablecoin issuer licenses to two bank-backed institutions in April 2026. According to the existing business plans of the two institutions, the regulated stablecoins in Hong Kong are expected to be launched in the middle to the second half of this year.
The Hong Kong government mentioned that the Monetary Authority has sent letters to unregulated entities operating stablecoin issuance businesses in the market explaining the legal requirements and will continue to follow up; cases may be referred to the police or the Department of Justice if necessary. The government also stated that it will submit a bill to the Legislative Council this year to establish a regulatory framework for providers of virtual asset trading, custody, consulting, and management services.