Catenaa, Saturday, June 28, 2025-Hong Kong new stablecoin licensing regime will launch on August 1 with a high bar for applicants, the Hong Kong Monetary Authority (HKMA) announced Friday.
Only a limited number of issuers are expected to receive approval initially as regulators prioritize “real-world use cases” and operational readiness.
HKMA Chief Executive Eddie Yue outlined stringent requirements for stablecoin issuers, including robust reserve management, price stability mechanisms, asset protection, and anti-money laundering (AML) compliance.
Licensees must demonstrate capability to comply with regulatory frameworks across multiple jurisdictions, reflecting the cross-border nature of stablecoins.
The HKMA’s supervisory approach aligns closely with international standards, including guidelines from the Financial Stability Board (FSB).
Yue emphasized stablecoins’ inherent risks, user protection needs, and market capacity concerns, promising rigorous and prudent enforcement of the licensing rules.
Hong Kong’s new framework comes amid ongoing global discussions on how stablecoins will coexist with central bank digital currencies (CBDCs) and bank-issued tokenized deposits.
The regulatory environment remains fluid, with unresolved questions around interoperability, legal status, and systemic risk management.
Applicants should not assume participation in the HKMA sandbox guarantees license approval, as all candidates will be evaluated under the same criteria. The regime sets a high entry bar to build market trust and ensure stablecoins operate in a safe and sustainable manner.
The HKMA also highlighted the importance of clear redemption processes and reserve transparency to maintain stablecoin stability and user confidence, especially under market stress.
