The Hong Kong Monetary Authority has requested additional information from some applicants during the review process, including details on application scenarios, risk management, anti-money laundering arrangements, and reserve assets backing the stablecoins.
On February 11, Hong Kong Special Administrative Region Chief Executive John Lee stated during his opening speech at the Consensus Hong Kong conference that the Hong Kong Monetary Authority is actively processing license applications, with the first batch of stablecoin issuer licenses scheduled to be issued in March.
Previously, on February 2, Hong Kong Monetary Authority Chief Executive Eddie Yue revealed application progress for stablecoin licenses to media after a Legislative Council Financial Affairs Committee meeting. He indicated that the authority received 36 applications and is actively conducting assessments, aiming to issue the first batch of licenses by March. He emphasized that the number of licenses issued in the first round will necessarily be limited, with stability as the primary objective.
During the review process, the HKMA has sought supplementary information from certain applicants, covering application scenario specifics, risk management protocols, anti-money laundering frameworks, and reserve assets supporting the stablecoins. Eddie Yue expressed hope for prompt receipt of comprehensive documentation to advance the March licensing timeline.
Yue clarified that the regulatory framework and licensing system explicitly require licensed operators conducting any cross-border activities to comply with local regulatory requirements. For stablecoins issued overseas to be utilized in Hong Kong markets, particularly in retail contexts, obtaining a Hong Kong license is mandatory. Conditions include establishing a Hong Kong office and maintaining reserve assets within Hong Kong.
Hong Kong formally enacted the Stablecoin Ordinance on August 1, 2025, establishing a licensing regime for issuers of fiat-backed stablecoins. The ordinance mandates that Hong Kong stablecoin issuers must operate under license, with stablecoins requiring 1:1 backing by high-quality reserve assets and regular information disclosures. Applicants must be entities incorporated in Hong Kong, possessing identifiable management structures and physical offices. Additionally, licensed institutions must adhere to anti-money laundering and counter-terrorist financing requirements as stringent as those for traditional financial institutions, including user identity verification, transaction recording, and monitoring.
Fei Si, Partner at King & Wood Mallesons and Lecturer at the University of Hong Kong Faculty of Law, noted that among stablecoin license applicants, only those demonstrating strong compliance awareness, mature capabilities in reserve asset management and security, price stability mechanisms, redemption arrangements, technical security and operational resilience, risk management, anti-money laundering, and the ability to meet cross-border compliance requirements, while possessing sufficient financial and technical resources alongside sustainable business models and clear operational plans, are likely to secure licenses.
On June 23, 2025, Eddie Yue stated that if stablecoin application scenarios involve other jurisdictions, license applicants must present comprehensive compliance plans and adequate resources to ensure they and their business partners hold necessary licenses and comply with relevant regulations in Hong Kong and other regions when conducting stablecoin-related activities.
Yue further emphasized that applicants need to demonstrate how their stablecoin solutions practically address pain points in economic and financial activities, explain how to maintain sufficient usage volumes under compliance, and possess resources to sustain operations through both favorable and adverse market conditions.
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