Hong Kong financial authorities have announced that they will soon grant the first, limited batch of stablecoin provider licenses as the review process for applications is almost completed.
HKMA To Grant Limited Stablecoin Licenses SoonAt a Legislative Council meeting, Yue affirmed that the financial authority expects to issue a “very small number” of stablecoin issuer licenses in March, according to a Reuters report.
In August, the HKMA enacted the Stablecoins Ordinance, which directs any individual or entity seeking to issue any fiat-referenced stablecoin (FRS) in Hong Kong, or any Hong Kong Dollar (HKD)-denominated token, to obtain a license from the regulator.
Local news outlets have reported that more than 30 companies have applied for the license, including the overseas arm of Chinese mainland financial technology giant Ant Group and logistics technology firm Reitar Logtech.
In December, legal experts suggested that Hong Kong’s ambitions to become a key regulated hub for stablecoins could be clouded by the People’s Bank of China’s explicit crackdown on the sector.
During a Monday media briefing, HKMA’s Chief Executive reportedly noted that their application review process is near its completion. Yue also highlighted that the regulator is focusing on use cases, risk management, anti-money laundering (AML) measures, and asset backing.
Moreover, he asserted that licensed issuers must comply with local regulations for cross-border activities, but added that “mutual recognition arrangements with other jurisdictions could be explored in the future.”
Hong Kong Continues Crypto Regulation EffortsHong Kong has been actively developing a comprehensive framework to support the expansion of the digital assets industry as part of its long-term strategy to become a global crypto hub.
The upcoming crypto reporting framework, the Crypto Asset Reporting Framework (CARF), is intended to bring crypto users across borders under global tax transparency rules, thereby preventing tax evasion. Hong Kong is set to begin its first cross-border exchanges of crypto reporting data in 2028.
The group noted that it mostly supports the proposals, but urged regulators to ease the record-keeping requirements for dissolved entities and the uncapped per-account penalties for minor technical errors. The Professionals Association warned that these elements of the CARF and CRS amendments could create operational and liability risks for market participants.
