Hong Kong has commenced issuing stablecoin licenses as part of a new regulatory framework aimed at enhancing user protection and integrating digital currency issuers into a clear legal structure. The Hong Kong Monetary Authority (HKMA) now requires stablecoin issuers to maintain strong reserves, adhere to governance rules, and ensure transparency to support safer digital payments. This move is part of Hong Kong's strategy to establish a regulated and trusted digital finance market. The stablecoin licensing framework, which took effect with the Stablecoin Ordinance in August, mandates that issuers operate under a defined legal framework, replacing informal practices with enforceable standards. Issuers must satisfy requirements related to reserves, governance, and operational stability, particularly for fiat-backed stablecoins pegged to the Hong Kong dollar or other major currencies. The HKMA is currently reviewing applications, with no issuers approved yet. This licensing initiative is part of a broader digital asset policy that includes upcoming regulations for trading platforms, custodial services, and advisory services. Hong Kong is also updating crypto tax reporting rules to align with international standards, aiming to share crypto-related tax information globally by 2028. These efforts underscore Hong Kong's commitment to becoming a regulated digital finance hub.