Stablecoin licensing has reached a new milestone. According to reports from the Greater Bay Area Voice of China Media Group, on February 2nd, the Financial Affairs Committee of the Hong Kong Special Administrative Region Legislative Council held a meeting. At the meeting, Mr. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), disclosed that the authority has received 36 applications for stablecoin issuer licenses, which are currently under assessment. The relevant review and research work is nearing completion, and the HKMA aims to issue the first batch of stablecoin licenses by March.
Mr. Yue pointed out that only a small number of licenses will be issued in this initial batch. The HKMA has already requested additional information from some applicants, such as detailed use cases for the stablecoins and risk management frameworks, including the investment of reserve assets. After collecting all required materials, the HKMA will make a decision on license issuance as soon as possible.
"Following the issuance of the first stablecoin licenses, Hong Kong will pioneer the implementation of a compliant stablecoin ecosystem. This will drive the adoption of related financial innovations such as tokenized assets and cross-border payments, attracting relevant institutions and capital to the Hong Kong market and strengthening its position as an international financial center in the digital finance sector," commented Wang Pengbo, Chief Analyst at Broadcom Consulting.
Mainland Chinese payment and financial platforms that have previously made preparations will also gain opportunities to operate related businesses compliantly. Furthermore, this initiative can provide practical experience for global stablecoin regulation and promote the implementation of cross-border regulatory cooperation.
It is noteworthy that Mr. Yue simultaneously emphasized that the development of stablecoins must be稳健 (prudent and stable). Therefore, when evaluating license applications, a key focus is the applicant institution's risk management capabilities. Under Hong Kong's regulatory framework, future stablecoin operators engaging in any cross-border activities, including in mainland China, Singapore, London, and ASEAN countries, must comply with local regulatory requirements.
Although Hong Kong is a "pioneer" in stablecoin development, the HKMA has consistently maintained a "stability-first" attitude towards stablecoins, prioritizing risk control. Previously, Mr. Yue has repeatedly written articles stating that investors should remain rational and that it is necessary to guard against excessive market speculation and hype. He has publicly stated that stricter regulatory requirements will inevitably limit the potential for rapid expansion of stablecoin businesses in the short term, and industry feedback is expected. After all, regulated stablecoin operations are in their infancy; starting strict, ensuring stability, and then appropriately relaxing rules based on practical experience is clearly more conducive to the sustainable and healthy development of the market and issuers compared to a lax start followed by cleaning up disorder.
Industry observers believe this approach is a choice made considering the risks in the global stablecoin market and the realities of Hong Kong's financial development. In Wang Pengbo's view, through strict license vetting and ongoing risk control, clear compliance standards are set for the industry, while potential financial risks such as those related to reserve assets and cross-border transmission can be preemptively mitigated. This promotes the orderly development of the stablecoin industry under the premise of ensuring financial stability, aligning with the HKMA's consistent principle of maintaining a regulatory bottom line.
In mainland China, a coordination mechanism meeting on cracking down on virtual currency trading speculation held at the end of 2025 indicated that stablecoins fall within the category of virtual currencies, and their related business activities are incorporated into the regulatory framework for illegal financial activities. Currently, stablecoins cannot meet compliance requirements such as customer identification and anti-money laundering, posing risks of being used for illegal activities including money laundering, fundraising fraud, and illegal cross-border capital transfers, necessitating strengthened full-chain regulation.
Since 2025, following the enactment of the Stablecoin Ordinance in Hong Kong, undercurrents have been stirring in the virtual currency market, also giving rise to illegal financial activities using emerging concepts like "stablecoins" as gimmicks. Criminals exploit this trend to lure the public with promises of high returns, conducting fraud under the guise of investment, prompting financial regulators in many regions to issue risk warnings.
Wang Pengbo stated that investors need to clearly understand the differences in stablecoin regulatory policies between mainland China and Hong Kong. He advises investors to steer clear of all unlicensed stablecoin products, both domestic and international. Furthermore, cross-border participation in licensed stablecoin-related businesses in Hong Kong must comply with mainland regulations on foreign exchange, cross-border transactions, and other relevant areas. Investors should be vigilant against irrational investment risks fueled by market hype and avoid blindly participating in related trading activities.
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