Hong Kong to grant first stablecoin issuer licenses in March: Report

Hong Kong is reportedly on track to issue its inaugural stablecoin issuer licenses as early as March, marking a significant step in the city’s ambition to become a leading global virtual asset hub. Sources familiar with the matter indicate that the regulatory framework, spearheaded by the Hong Kong Monetary Authority (HKMA), is nearing completion, allowing select applicants to begin formal operations under stringent regulatory oversight.

The new licensing regime mandates that stablecoins pegged to the Hong Kong Dollar (HKD) or other fiat currencies must be fully backed by high-quality, liquid reserves held in segregated accounts. Furthermore, licensed issuers will be subject to robust auditing, governance, and anti-money laundering (AML) requirements, ensuring investor protection and financial stability.

This proactive approach is seen as crucial for integrating digital assets into the mainstream financial system and provides much-needed regulatory clarity for firms seeking to establish regional headquarters in the city. The granting of these licenses will formalize the role of stablecoins within the financial technology ecosystem, setting a benchmark for regulatory standards across Asia.

Source: Hong Kong to grant first stablecoin issuer licenses in March: Report