Hong Kong Activates Stablecoin Ordinance as Licensing, Tax Reporting and Market Reforms Accelerate

TLDR

• Hong Kong Starts Stablecoin Licensing as Digital Asset Rules Rapidly Expand
• Hong Kong Rolls Out Stablecoin Law, Tightens Crypto Custody and Oversight
• Stablecoin Licensing Begins as Hong Kong Pushes Sweeping Crypto Reforms
• Hong Kong Advances Stablecoin Rules and Broad Digital Finance Regulations
• Stablecoin Ordinance Takes Effect as Hong Kong Expands Crypto Market Control

Hong Kong initiated its Stablecoin Ordinance and began license reviews as it advanced digital asset rules and broader financial reforms. The move strengthened its regulatory path and widened oversight across emerging markets. Moreover, the action signaled firm intent to build a trusted digital finance hub.

Stablecoin Licensing Regime Begins Under the HKMA

The Hong Kong Monetary Authority started assessing applications under the Stablecoin Ordinance, which now governs all fiat-denominated issuers. The framework covers local entities and global issuers with Hong Kong dollar-linked products. Furthermore, the rules extend beyond borders to reinforce market integrity.

The Stablecoin Ordinance requires full reserve backing at all times, and approved assets include short-term deposits and government securities. These measures support price stability and strengthen user protections. Additionally, issuers must maintain clear separation between reserves and company funds.

Under the Stablecoin Ordinance, issuers must also guarantee par-value redemption without unreasonable barriers. The mandate seeks to uphold confidence during market stress and improve general clarity. Moreover, non-authorized institutions must meet capital rules and maintain a physical presence in the city.

Virtual Asset Rules and Custody Oversight Expand

Hong Kong advanced more virtual asset legislation while the Stablecoin Ordinance progressed through early licensing work. Authorities prepared a full regulatory package for trading, custody, advisory, and asset management services. Furthermore, the framework will go before lawmakers this year.

The custody plan requires strict security policies and operational controls. Firms must maintain client asset segregation and use advanced storage systems while meeting supervision standards. Moreover, independent audits will reinforce transparency across the custody sector.

Authorities said the new rules complement the Stablecoin Ordinance, and they aim to create clear pathways for compliant market operations. The combined structure strengthens oversight and supports digital asset services across multiple sectors. Additionally, the approach aligns with global regulatory trends.

Tax Reporting and Market Reforms Move Forward

Hong Kong confirmed plans to start crypto tax information exchange in 2028 as part of international cooperation efforts. The program will follow global reporting standards and require detailed transaction data from service providers. Authorities will refine systems before rollout.

The city also advanced stock market reforms that target faster settlement cycles and improved listing access. These updates support broader financial growth and align with regional strategies. Moreover, Hong Kong continued to refine rules for funds and family offices.

Policymakers linked the broader agenda to national development plans and highlighted the Stablecoin Ordinance as a key anchor. The combined measures strengthen digital infrastructure and reinforce the city’s financial position. Additionally, officials noted ongoing industry coordination as reforms progress.

The post Hong Kong Activates Stablecoin Ordinance as Licensing, Tax Reporting and Market Reforms Accelerate appeared first on CoinCentral.