The Hong Kong stablecoin ordinance in brief: the HKMA licenses issuers
A stablecoin is a crypto token pegged to a fiat currency, usually the US dollar, that aims to hold a steady price. USDT and USDC are the best known. For years they had no dedicated rules in Hong Kong; anyone could trade them at a walk-in shop or online. That changed in 2025. The Stablecoins Ordinance (Cap. 656) passed its third reading on 21 May 2025 and took effect on 1 August 2025, making Hong Kong one of the few places with a complete licensing regime for fiat-backed stablecoins.
The ordinance does three things. It regulates issuance: issuing a fiat-referenced stablecoin in Hong Kong, issuing a Hong Kong dollar-referenced one anywhere in the world, or actively marketing an issuance to the Hong Kong public all require a licence from the Hong Kong Monetary Authority (HKMA). It regulates sales: only licensed issuers’ stablecoins may be offered to retail investors in Hong Kong, and only by designated “permitted offerors”. And it sets standards: a licensed stablecoin must be fully backed by segregated, high-quality reserves and redeemable at par. Stablecoins in Hong Kong aren’t banned; they have been pulled into a bank-style supervisory framework.
Issuer licensing: a high bar and very few seats
A non-bank applicant for a stablecoin issuer licence needs at least HK$25 million in paid-up share capital and must meet requirements on reserve management, redemption, risk management, anti-money laundering and disclosure. Reserve assets are held separately from the issuer’s own, and their value must at all times cover the face value of coins in circulation. When a holder asks to redeem, the issuer must pay out fiat at par.
The HKMA has been cautious. According to the government’s 10 June 2026 reply to LegCo, it received 36 applications and expects to grant “very limited” licences. The first two came on 10 April 2026: The Hongkong and Shanghai Banking Corporation (licence reference FRS02) and Anchorpoint Financial Limited, owned by Standard Chartered Bank (Hong Kong), HKT and Animoca Brands. Both plan to launch HKD stablecoins first. As of 6 October 2026 no further licence had been granted. For when those two coins arrive, what they’ll be for and how you’ll get one, see our HKD stablecoin guide.
Who may sell stablecoins to retail buyers?
The ordinance treats issuing and offering separately. Even a licensed stablecoin can only be offered to the Hong Kong public by a permitted offeror: the licensed issuer itself, an SFC-licensed corporation or licensed virtual asset trading platform, or an authorised institution, meaning a bank. Issuers already active before the law took effect had a six-month transition.
On 3 November 2025 the SFC issued circular 25EC57, letting licensed platforms offer HKMA-licensed stablecoins directly to retail clients without the 12-month track record normally required for new tokens. Once HKD stablecoins are fully launched, they will be among the very few tokens that can be opened to retail on day one.
A ✕ here means the party may not offer that coin to Hong Kong retail investors. It does not make holding or transferring the coin yourself illegal. The ordinance governs who may sell what, not who may own it.
USDT and USDC buyers: what actually changed?
Neither USDT’s nor USDC’s issuer holds an HKMA licence, so in Hong Kong both are “unlicensed stablecoins” that cannot be offered to retail. That has three practical consequences.
First, on licensed platforms and brokers, USDT and USDC are generally reserved for professional investors or limited to deposits, withdrawals and settlement. Tiger’s YAX, for example, lists USDT as a professional-investor-only asset; Futu accepts USDT deposits; and OSL’s OTC desk can settle large trades in USDT or USDC. Arrangements differ between platforms and keep shifting, so check each platform’s own terms. Second, walk-in shops can no longer openly sell you USDT (more below). Third, offshore platforms sit outside Hong Kong rules entirely, so buying USDT there comes with no local investor protection.
Good for buyers
- Licensed stablecoins come with full reserves and a legal right to redeem at par
- Shops can no longer push USDT, removing one lure for cash-handover scams
- HKD stablecoins will be available directly on licensed platforms and in bank apps
Harder for buyers
- Far fewer legal routes for retail buyers to get USDT in Hong Kong
- Licensed platforms list few stablecoins; USDT is mostly for professional investors
- HKD stablecoins were still not open to retail as of October 2026
Walk-in shops: has the USDT trade gone underground?
Shops felt the ordinance most directly. On 10 September 2025 the government told LegCo that virtual asset OTC shops are not permitted offerors and may not offer specified stablecoins to retail or professional investors, regulated or not, and that the HKMA would monitor and follow up. Media reports since then describe shops taking USDT prices off their windows and quoting privately instead. Some, such as VBIT, now label USDT on their websites as “sell-to-shop only”: they buy it from customers but no longer sell it.
The shops themselves still sit outside any virtual asset licensing regime. The government has confirmed that the SFC will license virtual asset dealers, with no transitional period, and a bill is due in LegCo within 2026, but as of 6 October 2026 it had not been gazetted. Until then, anyone buying USDT “off the menu” from a shop carries both the legal grey area and the familiar risks of hell notes, fake shops and robbery, covered in our scams guide.
How to tell whether a stablecoin is licensed
Once the ordinance took effect, the word “licensed” acquired market value, and impersonation followed. Checking is not hard. Start with the issuer: every licensed issuer appears on the HKMA’s Register of Licensed Stablecoin Issuers, and as of October 2026 there are only two, HSBC and Anchorpoint. A similar-sounding name, a claim to have “applied”, or a place in the sandbox does not make an issuer licensed.
Next, look at who is selling it to you. Even a licensed stablecoin may only be offered to you by the licensed issuer, an SFC-licensed firm or platform, or a bank. If the seller is a walk-in shop, a person on social media or an unfamiliar website, the trade sits outside the regulated perimeter even if the coin’s name is right. Then look at what is being promised. A licensed issuer has a legal duty to redeem at par. Anyone promising “guaranteed returns”, an annual yield or a presale discount isn’t selling a stablecoin in the ordinance’s sense; that is the classic wrapping of an investment scam.
Finally, remember that a stablecoin is built to stay still. Any product sold as a stablecoin that promises to go up deserves suspicion. If you’re unsure about a platform or product, run it through our licence-check steps first.
Timeline of stablecoin regulation in Hong Kong
- Mar 2024HKMA launches the stablecoin issuer sandbox
Prospective issuers test in a controlled setting.
- 18 Jul 2024First sandbox participants named
JINGDONG Coinlink Technology (HK), RD InnoTech, and Standard Chartered Bank (HK) with Animoca Brands and HKT.
- Dec 2024Stablecoins Bill introduced to LegCo
The legislative process begins.
- 21 May 2025LegCo passes the bill
Commencement set for 1 August 2025.
- 1 Aug 2025Stablecoins Ordinance in force
Issuing and retail offering now require a licence and a permitted offeror.
- 10 Sep 2025Government: shops are not permitted offerors
They may not offer USDT or other specified stablecoins.
- 3 Nov 2025SFC circular 25EC57
Licensed platforms may offer licensed stablecoins to retail without a 12-month record.
- 10 Apr 2026First two issuer licences
HSBC (FRS02) and Anchorpoint Financial.
- 12 Aug 2026HKDAP institutional beta
Institutions, corporates and professional investors only; retail targeted as early as end-2026.
- 16 Sep 2026Policy Address
Promote trading of licensed stablecoins on licensed platforms and their use to settle tokenised money market funds.
- 30 Sep 2026HSBC names “HSBC RedCoin”
Launch planned for 2H 2026 in PayMe and the HSBC HK app; not issued as of 6 Oct 2026.
What’s next: the Policy Address and everyday use
The 16 September 2026 Policy Address set the next stage. The SFC will promote trading of regulated stablecoins on licensed virtual asset platforms and their use to settle tokenised money market funds. The HKMA will encourage licensees to expand use cases for regulated stablecoins across cross-border payments, local payments and tokenised-asset trading. Separately, the HKMA’s EnsembleTX project aims to settle in central bank digital currency and run 24/7 by around the end of 2026.
For most people the first visible change will be payments. HSBC says RedCoin will launch in PayMe and the HSBC HK app for transfers and payments to participating merchants. HSBC also warns that it has not yet issued any stablecoin in Hong Kong, so treat any “HSBC stablecoin” investment pitch with suspicion.
The ordinance isn’t really trying to replace USDT. It is building a regulated alternative for when Hong Kong people want one.
In the short term, USDT has become harder to buy legally in Hong Kong. In the medium term, once HKD stablecoins work inside bank apps and on licensed platforms, most local payment and transfer needs can stay inside regulated channels. Until then, we suggest handling large stablecoin trades only through licensed channels and avoiding cash handovers.
For the source text, see the Stablecoins Ordinance on eLegislation, or read our broader guide to Hong Kong crypto rules.
Frequently asked questions
What is the Hong Kong Stablecoins Ordinance?
The Stablecoins Ordinance (Cap. 656) passed LegCo on 21 May 2025 and took effect on 1 August 2025. It requires an HKMA licence to issue a fiat-referenced stablecoin in Hong Kong, to issue a Hong Kong dollar-referenced stablecoin anywhere, or to actively market an issuance to the Hong Kong public. Only licensed issuers’ coins may be offered to retail investors.
Can I still buy USDT in Hong Kong?
USDT’s and USDC’s issuers are not HKMA licensees, so their coins cannot be offered to Hong Kong retail buyers. Holding USDT is not illegal. But walk-in shops can no longer sell it to the public, and licensed platforms generally reserve it for professional investors or limit it to deposits and withdrawals, with arrangements varying by platform. See our USDT guide.
Who are the licensed stablecoin issuers in Hong Kong?
As of October 2026 the HKMA has issued just two licences, both effective 10 April 2026: The Hongkong and Shanghai Banking Corporation (HSBC), and Anchorpoint Financial, a joint venture of Standard Chartered Bank (Hong Kong), HKT and Animoca Brands. Both plan HKD stablecoins first. The HKMA received 36 applications and says future licences will be “very limited”.
Is a licensed stablecoin protected like a bank deposit?
No. A licensed stablecoin must be fully backed by high-quality reserve assets and redeemable at par, but it is not a deposit and is not covered by the Deposit Protection Scheme. The difference from an unlicensed coin is that the HKMA supervises the reserves, redemption and risk management.
Can walk-in crypto shops still sell USDT?
On 10 September 2025 the government told LegCo that virtual asset OTC shops are not “permitted offerors” and may not offer specified stablecoins such as USDT to retail or professional investors, with the HKMA monitoring and following up. Some shops stopped posting prices publicly, and some now only buy USDT from customers.
Sources
- Stablecoins Ordinance (Cap. 656) · in force 1 Aug 2025
- HKMA — Register of licensed stablecoin issuers · accessed Oct 2026
- HKMA — First stablecoin issuer licences · 10 Apr 2026
- LCQ10: Stablecoins and OTC shops · 10 Sep 2025
- SFC circular 25EC57: Expanding VATP products and services · 3 Nov 2025
- LCQ6: Stablecoin licence applications · 10 Jun 2026
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