- Main event, leadership changes, market impact, financial shifts, or expert insights.
- First license expected early next year.
- Improved risk management requirements anticipated.
The Hong Kong Monetary Authority (HKMA) is now accepting applications for stablecoin issuer licenses, expecting the first issuance early next year. This new regime mandates stringent AML/CFT compliance, high-quality asset reserves, and physical operations in Hong Kong.
Hong Kong Monetary Authority has started accepting applications for fiat-pegged stablecoin issuer licenses with a new regulatory regime effective August 2025.
Licensing Initiative
The licensing initiative by HKMA is crucial for regulating stablecoins in Hong Kong, aiming for market discipline with strict regulations and real-name requirements.
Hong Kong Monetary Authority has initiated its new regulatory regime by inviting applications for fiat-pegged stablecoin issuer licenses. The regime will take effect in August 2025, and the first license is expected early next year. Regulator Hong Kong Monetary Authority under the guidance of Darryl Chan Wai-man and Kelvin Chan, emphasizes a stringent approach to risk management and compliance. The public should be cautious about claims of maintaining a license status.
Risk management, including asset management and IT infrastructure, is also an important factor when considering licence issuance. — Darryl Chan Wai-man, Deputy Chief Executive, HKMA
Market Impact and Global Trends
The new regime impacts the financial market by requiring stablecoin issuers to hold high-quality liquid asset reserves and operate physically in Hong Kong. Analysts consider that compliant stablecoins could gain market share, affecting liquidity and trading patterns for cryptocurrencies, including ETH and BTC. This regulatory move aligns with global trends towards tighter control over digital assets, echoing similar frameworks in the EU and Singapore. Prior regulatory efforts often led to increased institutional acceptance but also posed compliance challenges. For additional context, read about the HKMA Mandates Identity Verification for Stablecoin Holders.
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