Hong Kong accelerates the implementation of stablecoin regulation; the Hong Kong Monetary Authority aims to issue the first batch of licenses by March

On February 4th, according to Beijing Business Daily, new progress has been made in the regulation of stablecoins in Hong Kong. Hong Kong Monetary Authority Chief Executive Eddy Yue stated that they have received 36 stablecoin issuer license applications, and the evaluation process is underway. They aim to issue the first batch of stablecoin licenses by March, but the number will remain cautious, issuing only a small amount. Yue emphasized that one of the key focuses of the review is risk management capabilities, including stablecoin application scenarios, reserve asset allocation, and cross-border compliance arrangements. In the future, if cross-border business involves Mainland China, Singapore, London, and ASEAN, relevant institutions must comply with local regulatory requirements simultaneously. Industry insiders believe that the approval of the first batch of licenses could promote the development of a compliant stablecoin ecosystem in Hong Kong, drive financial innovations such as tokenized assets and cross-border payments, and further strengthen Hong Kong’s international position in digital finance. However, the HKMA clearly adheres to a “stability first” regulatory approach, believing that stablecoin activities should be strictly regulated and steadily advanced, with rules gradually optimized based on practical experience. Regulators also warn to be vigilant against illegal financial activities using the “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 prevent market speculation risks.