Hong Kong will officially implement its new regulatory framework for stablecoin issuers on August 1, as the city moves to safeguard digital currency adoption through licensing, oversight, and a public issuer registry.

While the rules come into effect this week, licences for stablecoin issuers will not be issued until early 2026, according to the Hong Kong Monetary Authority (HKMA).

The regulator is calling for full applications by September 30, and expects serious players in the space to initiate contact by August 1.

This staged rollout comes amid growing concerns over unregulated stablecoin activity, speculative surges in trading volumes, and potential scams.

Hong Kong’s move to tighten control aligns with its broader digital finance ambitions under the city’s “Genius Act” policy push.

The HKMA formally released two sets of guidelines on Tuesday—one governing the regulation of stablecoin issuers, and the other detailing anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.

These guidelines follow a public consultation and will form the foundation for digital asset licensing in Hong Kong.

However, despite earlier market speculation that licensing could begin this year, the HKMA clarified that approvals will be delayed until early 2026.

That timeline has surprised some stakeholders who anticipated faster movement following the announcement of the regulatory framework.

Applicants must now submit full documentation by the end of September to be considered for the first batch of licences. Meanwhile, the HKMA will continue to build out its infrastructure and prepare its monitoring tools.

A public registry of approved stablecoin issuers will be published on the HKMA’s website once the scheme goes live.

The HKMA has issued multiple warnings in tandem with the rollout. It stated clearly that no entities are currently licensed to issue stablecoins in the city and that any claims of approval, regulatory backing, or pending approval should be treated with suspicion.

This move comes amid heightened concern that growing hype around stablecoins is fuelling misinformation. HKMA officials have noted a sharp uptick in trading activity and digital asset stock prices—fluctuations they believe are not backed by fundamentals, but rather by hype.

The regulator emphasised that any individuals or firms claiming to be licensed—or even in the process of applying—should not be taken at face value. Hong Kong residents holding or transacting with such stablecoins are doing so at their own risk.

The new guidelines are comprehensive, laying out operational, financial, and risk-based requirements for stablecoin issuers. These include proper management of reserves backing the coins, transparent issuance and redemption processes, and internal controls to handle operational risks.

AML protocols will also be required, such as customer identity checks, wallet risk assessments, and transaction monitoring. The HKMA said it will conduct audits and inspections to ensure compliance.

Violations may lead to regulatory action, including the suspension or revocation of licences, once they are granted.

This layered framework reflects Hong Kong’s cautious yet deliberate approach to digital finance, where consumer safety and market integrity are prioritised as the city looks to integrate stablecoins into its broader financial infrastructure.

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