Hong Kong Delays Stablecoin Licensing Until 2025 Amid Regulatory Scrutiny

Hong Kong's financial regulators have pressed pause on stablecoin licensing until at least 2025, despite finalizing a comprehensive framework set to take effect August 1. The Hong Kong Monetary Authority (HKMA) cited rigorous vetting requirements and operational capacity constraints as key reasons for the delay.

The new rules demand strict compliance from issuers, including transparent reserve management, anti-money laundering protocols, and minimum capital thresholds. Early applicants face a September 30 deadline, but approvals won't be expedited—Darryl Chan Wai-man, HKMA's deputy CEO, warned that only a select few may clear the bar by early 2025.

This measured approach contrasts sharply with the U.S. GENIUS Act's rapid implementation, positioning Hong Kong as a jurisdiction prioritizing systemic stability over first-mover advantage in crypto markets. The phased rollout reflects growing global tensions between innovation and risk containment in digital asset regulation.