Hong Kong Crypto Regulation Tightens With Limited Stablecoin Licenses

Hong Kong's financial regulators are taking measured steps to establish a controlled stablecoin market. The Hong Kong Monetary Authority (HKMA) has received applications from 77 institutions but plans to issue only a select few licenses initially. This phased approach reflects a deliberate strategy to balance innovation with systemic oversight.

Major banks dominate the applicant pool. Industrial and Commercial Bank of China's Hong Kong subsidiary joins Bank of China (Hong Kong) as key contenders, with HSBC and Standard Chartered expected to follow. These applications signal institutional confidence in Hong Kong's digital asset framework.

The HKMA maintains strict evaluation criteria, emphasizing that preliminary discussions don't guarantee approval. A spokesperson clarified licensing depends solely on regulatory compliance. The authority warned investors against unregulated stablecoin offerings.