The Explanatory Note on Licensing of Stablecoin Issuers is Hong Kong Monetary Authority guidance for the licensing regime created under the Stablecoins Ordinance (Cap. 656). Published with the HKMA’s July 2025 implementation package, the Note explains how the Monetary Authority interprets licensing scope, minimum criteria, application procedures, ongoing duties and supervisory powers for persons that intend to conduct regulated stablecoin activities in Hong Kong.
As of June 17, 2026, the guidance remains part of Hong Kong’s active stablecoin issuer framework. The underlying regime came into operation on August 1, 2025, and the HKMA has since begun granting licences and maintaining a public register of licensed stablecoin issuers.
Hong Kong stablecoin licensing scope
The Note focuses on specified stablecoins, currently covering fiat-referenced stablecoins that purport to maintain a stable value by reference wholly to one or more official currencies. A regulated stablecoin activity includes issuing a specified stablecoin in Hong Kong in the course of business, issuing one outside Hong Kong that purports to maintain a stable value by reference wholly or partly to Hong Kong dollars, or another activity specified by the Monetary Authority.
The HKMA indicates that determinations such as whether a stablecoin is issued in Hong Kong, or whether an activity is actively marketed to the Hong Kong public, are fact-specific. Relevant factors may include management and operations, incorporation, minting and burning arrangements, reserve-asset management, cash-flow bank accounts, language used in marketing, Hong Kong targeting and domain names.
Key provisions for stablecoin issuer applicants
- Corporate status: applicants must generally be Hong Kong-incorporated companies, while authorized institutions incorporated outside Hong Kong are treated separately under the Note.
- Financial resources: non-authorized institution applicants must meet adequate financial-resources expectations, including a HKD25 million paid-up share capital benchmark or approved equivalent resources.
- Reserve assets: each type of specified stablecoin requires a segregated reserve asset pool. The reserve pool must at least equal the par value of outstanding tokens, with the HKMA expecting an appropriate buffer where needed.
- Redemption: holders must have a right to redeem at par value. Unless otherwise approved, valid redemption requests should be processed within one business day after receipt.
- Governance and controls: applicants must address fit-and-proper standards, risk governance, technology risk, operational resilience, AML/CFT controls, disclosure, complaint handling, recovery planning and orderly wind-down.
Application process and supervisory posture
The Note encourages prospective applicants to speak with the HKMA licensing team before submitting an application. Applicants are expected to provide the required forms and supporting documents, and the HKMA may request additional materials, including independent assessment reports. Licensing applications are considered by a Stablecoin Advisory Committee, which makes recommendations on licensing matters under the Ordinance.
If a licence is granted, the HKMA notice specifies the licence number and the date on which the licence takes effect. Licensees must then meet ongoing requirements, including paying licence fees, displaying licence numbers on relevant advertising material and consumer-facing software interfaces, and continuing to fulfil the minimum criteria. The Note also summarises HKMA powers over licensees, including powers that may become available where a licensee is insolvent, unable to meet obligations, contravenes the Ordinance or licence conditions, or carries on business in a manner detrimental to holders or creditors.
Status and related Hong Kong stablecoin materials
The licensing Note should be read with Cap. 656, the HKMA’s supervisory guideline for licensed stablecoin issuers and the AML/CFT guideline for licensed stablecoin issuers. It is guidance rather than a standalone statute, and the Note itself states that it is not a substitute for appropriate legal or other professional advice.
For CryptoSlate taxonomy purposes, this profile is best treated as Hong Kong agency guidance under an in-force stablecoin licensing regime, with primary topics in stablecoins, licensing, payments, AML/CFT and consumer protection.