
Key Points:
- Licensing regulations for stablecoin issuers in Hong Kong became effective last Friday.
- The region seeks to boost its prominence in the crypto industry by establishing clear rules for stablecoin operations.
Hong Kong’s framework for stablecoin issuers is now live, reflecting the government’s dedication to developing its crypto sector. This development marks another step in the administrative region’s broader goal to become a primary hub for cryptocurrency and Web3 across Southeast Asia. Previous measures included the creation of a regulatory structure for crypto exchanges, established two years ago, followed by consultations on stablecoin regulations initiated in 2023 Read more here.
The newly passed law mandates that applications for stablecoin licenses can be submitted over the next three months, as guided by the Hong Monetary Authority (HKMA) Read the guidance here. Companies that apply can continue their operations while their requests are under review, until January 31. Despite interest from around 40 firms considering license applications last month, many may struggle to meet approval standards as the market has shown signs of overexcitement, as noted by HKMA’s CEO, Eddie Yue, who suggested only a handful of licenses would likely be granted.