Two years ago, most stablecoin regulation in Asia-Pacific lived in consultation papers. In 2026, several of the region's biggest financial centers have frameworks in force or in draft law, and the first licensed issuers are preparing to launch.
For payment service providers, the details matter. Most of these regimes focus on who can issue a stablecoin, not who can accept one. But they shape which stablecoins merchants will see, how they can be marketed, and what compliance expectations flow down to everyone else in the payment chain.
Here's where the four most active markets stand, and what each one means for PSPs.
Hong Kong: licensed issuers, HKD stablecoins on the way
Hong Kong's Stablecoins Ordinance took effect on 1 August 2025. It created a mandatory licensing regime, supervised by the Hong Kong Monetary Authority (HKMA), for issuing fiat-referenced stablecoins in Hong Kong, and for issuing stablecoins elsewhere that reference the Hong Kong dollar.
The HKMA was deliberately selective. On 10 April 2026 it granted the first two issuer licenses: one to Anchorpoint Financial, a joint venture of Standard Chartered Bank (Hong Kong), HKT and Animoca Brands, and one to HSBC. Both have said they plan to launch HKD-referenced stablecoins in the second half of 2026, and HSBC has said it intends to support merchant payments through its PayMe app.
What it means for PSPs: regulated HKD stablecoins are about to reach consumers through channels they already use. Merchants in Hong Kong, and merchants selling to Hong Kong customers, will start to see demand. The HKMA has also publicly warned about scams tied to stablecoins, so screening and provenance checks in the payment flow aren't optional extras.
Singapore: the MAS framework moves into draft law
The Monetary Authority of Singapore (MAS) finalized its approach to single-currency stablecoins in August 2023. On 1 September 2026, it published the draft legislation to bring that framework into force through amendments to the Payment Services Act 2019. The consultation closes on 16 October 2026, and the detailed rules will follow in subsidiary legislation.
The key proposals:
- A license for MAS-regulated stablecoins. Singapore-incorporated issuers of stablecoins pegged to the Singapore dollar or a G10 currency can apply. Only licensed issuers can describe their tokens as "MAS-regulated stablecoins."
- A recognition route for foreign stablecoins. Stablecoins issued abroad under adequate home-country oversight could be recognized by MAS, a notable shift from the 2023 position.
- Designated systemic stablecoins. MAS would gain powers to designate stablecoins that could pose risks to Singapore's financial system.
- No interest for holders. MAS has proposed banning interest payments to holders of MAS-regulated stablecoins.
Stablecoins outside the framework continue to be treated as digital payment tokens, and firms providing services in them still need a Payment Services Act license.
What it means for PSPs: the MAS label is opt-in, so merchants will encounter both MAS-regulated and other stablecoins. PSPs should be clear about which stablecoins they accept and settle in, and how that maps to their own license. Watch the recognition regime closely: it decides whether widely used foreign stablecoins get the same standing as local ones.
Japan: a regulated yen stablecoin is live
Japan revised its Payment Services Act framework in 2023 to create a legal path for fiat-backed stablecoins, issued by banks, trust companies and registered funds transfer service providers.
In October 2025, JPYC Inc. began issuing JPYC, the first yen stablecoin under the revised framework, after registering as a funds transfer service provider with the Financial Services Agency. It is backed by yen deposits and Japanese government bonds, and several Japanese businesses have announced plans to build it into retail, ecommerce and B2B payment systems.
What it means for PSPs: Japan now has a domestic, regulated stablecoin that merchants can accept without currency conversion. For PSPs serving Japanese merchants, or cross-border merchants selling into Japan, yen stablecoin acceptance moves from theory to a real product decision.
Australia: stablecoins inside the payments licensing overhaul
Australia is taking a different route. Rather than a standalone stablecoin law, it's bringing stablecoins into a broad modernization of payments regulation.
Treasury's exposure draft legislation, first released in October 2025 with further tranches in 2026, introduces an activity-based licensing framework for payment service providers, covering functions such as stored value facilities and merchant acquiring. Payment stablecoins are treated as tokenized stored value facilities, with larger providers subject to prudential oversight by APRA. The government has said it's working toward introducing the legislation to Parliament in 2026.
What it means for PSPs: this is the market where PSPs themselves are most directly in scope. Merchant acquirers and payment providers should track how their own licensing changes, and how accepting or settling in stablecoin fits into the new categories.
Southeast Asia and India
Outside these four markets, approaches vary widely. Some Southeast Asian regulators license digital payment token services and have moved crypto oversight into their main financial regulators. Others remain more restrictive. India's policy position is still developing. For PSPs operating across several of these markets, market-by-market legal review remains essential.
Five takeaways for APAC PSPs
- Issuer rules are clearing the way for acceptance. The licensing burden sits mainly with issuers, but it gives merchants and PSPs more confidence in the stablecoins they accept.
- Not every stablecoin will carry the same label. Expect a mix of locally regulated, foreign-recognized and other stablecoins. Your acceptance policy should be explicit.
- Compliance expectations flow down. Sanctions screening, IP and geolocation checks, and Travel Rule data capture are baseline expectations wherever stablecoin changes hands. See Stablecoin Compliance for PSPs in APAC.
- Australia puts PSPs directly in scope. Payment providers there should review their own licensing as the reforms progress.
- Timelines are still moving. Singapore's consultation closes in October 2026, Hong Kong's issuers launch later this year, and Australia's legislation is still in progress. Build with flexibility.
How WalletConnect Pay helps PSPs stay compliant across markets
WalletConnect Pay runs compliance inside the payment flow rather than alongside it. Sanctions and IP screening and Travel Rule capture happen on every payment, with results returned to your systems and outcomes set by the policy you configure. Capture adapts to the Travel Rule requirements of each region where they apply to you, and data arrives in the formats your existing controls already read.
That means one integration can serve merchants in Hong Kong, Singapore, Japan and Australia, with policy adjusted per market rather than a new build per market.
Do PSPs need a stablecoin issuer license to accept stablecoin payments?
Generally no. Issuer licenses in Hong Kong and Singapore apply to issuing stablecoins. PSPs may still need licenses for payment or digital payment token services depending on the market and what they do, so confirm with local counsel.
What is a MAS-regulated stablecoin?
Under MAS's proposals, it's a stablecoin issued by a MAS-licensed issuer, pegged to the Singapore dollar or a G10 currency, and meeting MAS requirements on reserves and redemption. Only these can use the label.
When will HKD stablecoins launch?
Both licensed issuers have said they plan to launch in the second half of 2026.
How are stablecoins regulated in Australia?
Under the proposed reforms, payment stablecoins are treated as tokenized stored value facilities within a new payments licensing framework. The legislation is still progressing.