Overview

• The stablecoin ordinance becomes effective on August 1, officially launching Hong Kong’s new licensing framework.
• The HKMA published detailed licensing procedures, explanatory notes and supervisory and AML/CFT guidelines for prospective issuers.
• Institutions are urged to submit applications by September 30 to receive feedback and qualify for the inaugural licence batch.
• Deputy Chief Executive Darryl Chan confirmed that only a handful of licences will be granted under the cautious phased approach.
• Applicants must demonstrate robust business plans, high-quality reserve management, IT infrastructure and comprehensive risk controls.