Overview
- HKMA chief Eddie Yue told lawmakers the review process is nearly complete and only a “very small number” of issuers will be approved in March.
- Assessments focus on clear use cases, full reserve backing, robust operational and financial risk controls, and strong anti‑money‑laundering safeguards.
- Licensed issuers must follow Hong Kong rules for cross‑border activity, with potential mutual recognition with other jurisdictions noted as a future option.
- The move advances the regime established by the Stablecoins Ordinance, which took effect on Aug. 1, 2025, transitioning from the 2024 sandbox to a supervised market.
- Reports indicate about 36 applications in the first window, and a limited initial cohort could concentrate early bank and payment integrations around the first licensees.