Hong Kong is set to issue its first batch of crypto licenses in March 2026 — a move that could reshape the territory’s role in global digital finance even as mainland China keeps its strict cryptocurrency ban in place. Why it matters The Hong Kong Monetary Authority (HKMA) has fast-tracked assessments of 36 stablecoin license applications, positioning the city as a controlled gateway for regulated digital assets. That push comes after the territory’s Stablecoins Ordinance passed in May and the regulatory framework took effect in August, creating a legal path for issuers while underscoring prudence and financial stability. What officials are saying HKMA Chief Executive Eddie Yue confirmed the timeline at a Legislative Council meeting on Feb. 2, stressing a cautious rollout: “Only a very small number of licenses will be granted in the initial round, underscoring prudence and financial stability.” Financial Secretary Paul Chan has described the broader approach as “responsible and sustainable.” Regulators will prioritize applicants that demonstrate strong anti-money‑laundering controls and robust reserve‑backing mechanisms, casting stablecoin rules as infrastructure development rather than a free-for-all. Who’s applying High-profile institutions have signaled interest. The HKMA has received applications from major industry names, including Standard Chartered, Animoca Brands, and Ant Group’s digital technology unit, among others — reflecting cross‑sector appetite for a regulated stablecoin market. The geopolitical backdrop Hong Kong’s move stands in sharp contrast to mainland China’s enduring 2021 crypto ban, which eight Chinese regulatory bodies recently reiterated. Academics and policymakers point to deeper tensions: Monique Taylor of the University of Helsinki says stablecoins “challenge [Beijing’s] state control over money, payments and capital flows,” making them politically sensitive in a state‑centered monetary model. At the same time, global shifts around the U.S. dollar are adding pressure. BRICS de‑dollarization accelerated in 2026, with member states reportedly settling over 85% of mutual trade in local currencies. Russian President Vladimir Putin has also flagged the search for alternatives to dollar‑centric systems: “We are not refusing, not fighting the dollar, but if they don’t let us work with it, what can we do? We then have to look for other alternatives, which is happening.” What to watch in March The initial approvals will be tightly scoped and closely watched by regulators worldwide. Hong Kong aims to strike a balance — offering a regulated environment that could attract institutional players while guarding against financial stability and capital‑flow risks. How Hong Kong manages that balance could set a precedent for other jurisdictions trying to bridge traditional finance and crypto amid broader geopolitical shifts around the dollar. Read more AI-generated news on: undefined/news