The Regulatory Watchdog, responsible for the framework, employs a thorough and exclusive review process for potential publishers.
According to a local report on July 20, the stablecoin licensing regime for arrivals under the Hong Kong Monetary Authority (HKMA) is not open to popular applications in the early stages, but follows an invitation-based system.
The approach, which is expected to come into effect on August 1, 2025, is intended to ensure that only qualified players will enter the market. Citing the unnamed source, the report added that HKMA will engage in advance with potential publishers to identify whether it will meet regulatory requirements for issuance.
These are expected to include a strict set of approval conditions outlined at the beginning of the year, including robust risk control, compliance with anti-money laundering rules, and a clear demonstration of real-world use cases for issued stable coins.
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If approval is obtained during this phase, the regulator will proceed with allowing the application for the license. The latest report reported that more than 40 entities are preparing to apply for licenses upon rollout as competition heats up in the local scene among interested participants.
Local industry sources believe that despite strong interest, authorities could potentially issue just a handful of licenses in single digits.
The Hong Kong government has consistently driven bold initiatives for the crypto sector, and the Stablecoin licensing regime is part of a broader plan to put local markets on the global map.
Treasury Secretary Christopher Hui recently said that the framework will “help more institutions from different regions of the world and help to issue stubcoins in Hong Kong according to real-world application scenarios, greatly improving the liquidity of related activities and the competitiveness of the Hong Kong market.”
Further regulations for the industry are also in the pipeline. This is expected to be rolled out in the coming months, including crypto trading platforms, off-the-shelf services and custodians.
read more: Hong Kong announces Digital Asset Policy 2.0 to strengthen its use of Stablecoin, RWA tokenization and regulations
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