Hong Kong’s monetary authority is preparing to grant its first licenses to stablecoin issuers in March, with approvals expected to be limited to only a small number of applicants, according to a Reuters report.
The Hong Kong Monetary Authority said reviews of stablecoin license applications are nearing completion. Speaking at a Legislative Council meeting on Monday, HKMA Chief Executive Eddie Yue said the first round of approvals would be selective, with only a “very small number” of issuers expected to be licensed initially.
The regulator said its assessments focus on proposed use cases, risk management, anti-money laundering controls and the quality of assets backing the stablecoins. Approved issuers will also be required to comply with Hong Kong’s rules on cross-border activities.
The licensing process follows the introduction of the Stablecoin Ordinance, which took effect last August and requires all stablecoin issuers operating in Hong Kong to obtain approval from the HKMA.
In January, Hong Kong Financial Secretary Paul Chan said the first licenses were expected in the first quarter of 2026, in line with the city’s approach of applying the same rules to activities that carry similar risks.
The HKMA has said it received applications from 36 institutions in the initial round but warned that early approvals should not be viewed as endorsements of specific business models. As of this week, the authority’s public registry of licensed stablecoin issuers remains empty.
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