Hong Kong’s Stablecoin Rules Kick In as It Looks to Establish Its Crypto Credentials

Hong Kong's regulatory framework for stablecoin issuers has officially taken effect, marking a significant step in the region's push to become a crypto and Web3 hub. The new law, passed in May, allows firms to submit license applications over the next three months, with the Hong Kong Monetary Authority (HKMA) overseeing the process.

Despite initial enthusiasm from around 40 companies, HKMA CEO Eddie Yue has tempered expectations, suggesting fewer than 10 licenses will be approved. The market's excitement appears premature, as the regulator emphasizes a cautious approach to ensure stability and compliance.

This MOVE builds on Hong Kong's broader strategy to attract crypto innovation while maintaining robust oversight. The region already established a framework for crypto exchanges two years ago and began stablecoin consultations in 2023.