On 27 May 2026, the HKMA issued a circular Virtual asset-related activities in relation to relevant stablecoins issued by licensed stablecoin issuers (HKMA Stablecoin Circular) providing guidance to SFC-registered institutions on relaxations in the requirements for activities in virtual assets (VAs) that apply to activities in stablecoins of licensed issuers (i.e. licensed under the Stablecoins Ordinance (Cap. 656)), which the Stablecoin Circular refers to as ‘Relevant Stablecoins’.
The requirements previously in force were set out in the Joint circular on intermediaries’ virtual asset-related activities (Joint Circular) published by the SFC and HKMA in December 2023, as amended by their Supplemental joint circular on intermediaries’ virtual asset-related activities (Supplemental Joint Circular) issued in December 2025.
The HKMA’s Stablecoin Circular now sets out the requirements for registered institutions providing dealing, advisory or asset management services in relation to Relevant Stablecoins which are based on their different risk profile as compared to VAs.
The SFC issued its Circular on Provision of Relevant Stablecoin Service by Virtual Asset Trading Platforms and Licensed Corporations on the 27 May 2026 which extends the same relaxations to the requirements for regulated activities in Relevant Stablecoins to SFC-licensed corporations and virtual asset trading platforms (VATPs).