What to know:
- Hong Kong has begun processing licenses for stablecoin issuers under its new Stablecoin Ordinance.
- New crypto laws for trading, custody, advisory, and management services will be sent to lawmakers this year.
- Cross-border crypto tax information sharing is planned to start in 2028.
Hong Kong has officially moved into a new phase of crypto regulation as its Stablecoin Ordinance comes into full effect. The city has started processing license applications for stablecoin issuers, marking a major step toward building a clear and structured crypto system.
The update was shared during a policy briefing held by the Legislative Council’s Finance Committee on January 30. The speech was delivered by Christopher Hui, Secretary for Financial Services and the Treasury, who outlined Hong Kong’s broader financial and digital asset plans for the coming years.
Stablecoin Law Now Active
The Stablecoin Ordinance, which officially took effect in August last year, has now entered its operational phase. This law introduces a licensing system for companies that issue fiat-backed stablecoins in Hong Kong. These are digital coins linked to real-world currencies like the Hong Kong dollar or the US dollar.
According to the government, the Hong Kong Monetary Authority (HKMA) is now actively processing license applications from stablecoin issuers. This means companies can no longer operate freely without oversight. If they want to issue stablecoins in Hong Kong, they must now meet regulatory standards, follow rules, and get official approval. This step is meant to protect users, reduce risks, and build trust in digital money systems.
More Rules Coming Soon
Stablecoins are only the beginning. Hong Kong is also preparing a full regulatory system for the wider crypto industry. New laws are being developed for virtual asset trading platforms, crypto custody services, advisory services, and crypto asset management companies.
The government confirmed that the draft regulatory framework for these services will be submitted to the Legislative Council later this year. This means exchanges, wallet providers, and crypto service firms will soon operate under formal legal structures instead of unclear rules.
Hong Kong is also working on laws for companies and individuals who give crypto investment advice or manage crypto assets for clients. Public consultations are already happening, and the goal is to submit a draft ordinance to the Legislative Council within the year. Once approved, this will make crypto advisory and management services officially regulated, similar to traditional finance roles.
Cross-border Tax Reporting
Hong Kong also plans to join global efforts to track crypto transactions across borders. The government will submit new legislation to adopt international crypto tax reporting standards. From 2028, Hong Kong will begin the automatic exchange of crypto-related tax information with other countries. This is designed to reduce tax evasion, increase transparency, and align Hong Kong with global financial systems. The crypto updates are part of a much larger strategy to strengthen Hong Kong as a global financial center.
In his speech, Christopher Hui said that Hong Kong is entering the first year of China’s 15th Five-Year Plan and will continue focusing on innovation, reform, and long-term growth. The government’s vision includes:
- Stronger financial markets
- Better digital finance systems
- Global investment connections
- Safer financial infrastructure
- Regulated digital assets
Crypto and stablecoins are now clearly included in this future plan.
What This Means
For crypto companies, this signals clarity. Instead of uncertainty, Hong Kong is offering clear rules, legal structure, licensing systems, government-backed frameworks and long-term policy direction.
For users, it means more protection, safer platforms, and higher standards. For investors, it means more confidence in the system. And for the global crypto market, it shows that Hong Kong is positioning itself as a regulated, trusted, and serious digital finance hub, not a risky or unstructured crypto zone.
Final Thoughts
Hong Kong is not banning crypto. With the Stablecoin Ordinance now active, licenses being processed, new crypto laws coming this year, and tax reporting starting in 2028, the city is building a full digital asset system step by step.
