Hong Kong says no stablecoin licenses issued yet, warns of legal risks for impostors

The Hong Kong Monetary Authority (HKMA) has invited stablecoin issuers to begin applying for licenses as the city’s stablecoin regulations are enacted in August.

In a statement released on July 29, the HKMA said interested firms can submit preliminary applications by Aug. 31.

This early stage is designed to help applicants understand regulatory expectations and receive feedback before formal submissions are due.

Meanwhile, companies that meet the necessary conditions must submit complete applications by Sept. 30.

Darryl Chan, the HKMA’s Deputy Chief Executive, reportedly said the regulator plans to issue only a limited number of licenses in the initial rollout, possibly starting in 2026.

This move puts Hong Kong in step with other major jurisdictions working to regulate stablecoins. In the European Union, several companies have already been approved under the MiCA framework.

Meanwhile, stablecoin providers in the US are adjusting to requirements introduced under the recently passed GENIUS Act.

Hong Kong’s regulations

Hong Kong’s new stablecoin framework requires these cryptocurrencies to be fully backed by high-quality, liquid assets. The reserve requirement protects consumers and ensures financial stability as the digital asset market expands.

The HKMA also cautioned market participants against making misleading public claims. The financial regulator stressed that the new law criminalizes false representation of oneself as a licensed issuer or an applicant.

HKMA stressed that any such misstatement could attract legal consequences.

To help the public identify legitimate operators, the HKMA will publish a list of licensed stablecoin issuers on its website. Until then, the regulator advised users to be wary of any firm or individual claiming to be licensed or applying for a license.

It added that no licenses have been granted yet, and any public claims to the contrary should be treated with skepticism.

The regulator also cautioned users that holding or transacting with unlicensed stablecoins will be done at their own risk.

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