Hong Kong accelerates stablecoin regulation, HKMA aims to issue first batch of licenses by March

BlockBeats News, February 4, according to Beijing Business Today, Hong Kong's stablecoin regulation has seen new progress. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that 36 applications for stablecoin issuer licenses have been received so far, and the relevant assessment work is being expedited. The aim is to issue the first batch of stablecoin licenses in March, but the number will be kept prudent, with only a small number issued.

Eddie Yue emphasized that one of the key focuses of the review is risk management capability, including stablecoin application scenarios, reserve asset allocation, and cross-border compliance arrangements. In the future, if cross-border business involves Mainland China, Singapore, London, or ASEAN, relevant institutions must also comply with local regulatory requirements.

Industry insiders pointed out that the issuance of the first batch of licenses is expected to promote the development of a compliant stablecoin ecosystem in Hong Kong, drive financial innovation such as tokenized assets and cross-border payments, and further consolidate Hong Kong's international position in the field of digital finance. However, the Monetary Authority has made it clear that it will adhere to a "stability-first" regulatory approach, believing that stablecoin business should be strictly regulated and advanced steadily, with rules gradually optimized based on practical experience.

Regulators also reminded the public to be alert to illegal financial activities using "stablecoin" as a gimmick. Industry experts advise investors to stay away from unlicensed stablecoin products, and cross-border participation in Hong Kong-licensed stablecoin-related businesses must also comply with Mainland China's foreign exchange and cross-border regulatory requirements to guard against market speculation risks.