The Hong Kong Monetary Authority (HKMA) granted stablecoin issuer licences to two entities on 10 April 2026 under the Stablecoins Ordinance, activating Hong Kong's dedicated licensing regime for fiat-referenced stablecoin issuers. On 27 May 2026, the Securities and Futures Commission (SFC) issued Circular 26EC26 directing virtual asset trading platforms (VATPs) and SFC-licensed corporations on their obligations when dealing in relevant stablecoins issued by HKMA-licensed issuers. The circular applies immediately.
Circular 26EC26 was issued under the Securities and Futures Ordinance (Cap. 571) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), with the SFC and HKMA jointly formulating the guidance. A relevant stablecoin is defined as pegged to one or more official currencies and treated as a primarily blockchain-based payment token, a characterisation that sets it apart from other virtual assets for regulatory purposes.
VATPs and licensed corporations providing services in relevant stablecoins must make clear and adequate disclosure of stabilisation mechanisms and redemption arrangements to clients. Holdings of relevant stablecoins are excluded from virtual asset exposure limit calculations. Intermediaries providing services only in relevant stablecoins to stablecoin-only clients need not assess those clients' general knowledge of virtual assets, but must apply suitability requirements when making solicitations or recommendations. VATPs holding a professional-investor-only licence may partner with licensed corporations to extend indirect retail client access to stablecoin services, subject to the licensed corporation's retail controls.
The circular does not alter existing VATP licensing conditions. Intermediaries offering both relevant stablecoins and other virtual assets must maintain separate due diligence tracks for each product category. The HKMA has not publicly identified the two entities that received stablecoin issuer licences on 10 April 2026; this matters for intermediaries assessing counterparty status when applying the circular's provisions to specific tokens.
Licentium advises virtual asset trading platforms, licensed corporations, and stablecoin issuers on Hong Kong regulatory obligations. If you are assessing how Circular 26EC26 applies to your operations or seeking guidance on stablecoin issuer licensing requirements, our team and partner network can assist. Work we undertake includes VATP licensing advisory, SFC suitability compliance design, stablecoin regulatory analysis, and AMLO/CFT programme development.