Hong Kong’s financial regulator has announced that it will not issue any stablecoin licenses this year, despite the effective date of its stablecoin legislation being today.
The Hong Kong Monetary Authority (HKMA) aims to manage market expectations after the stablecoin bill was passed in May. In the meantime, investors have significantly invested in Hong Kong-based crypto companies, while fintech firms have sought funding to grow in anticipation of the region’s emerging status as a global hub for digital assets.
According to Reuters, at least 10 companies listed in Hong Kong raised over $1.5 billion through share placements in July, targeting areas such as stablecoins, digital assets, and blockchain-based payment systems.
Although the HKMA will start accepting applications for stablecoin licenses, approvals are unlikely to be granted until 2026 at the earliest, with only a limited number of licenses expected in the first round, as noted by HKMA deputy chief executive Darryl Chan.
The regulator has previously highlighted the risks associated with the digital assets market, specifically around stablecoins, which have generated significant investor speculation. Recently, the HKMA urged market participants to exercise caution in their communications and to avoid making statements that could lead to misunderstandings or unrealistic expectations.