Hong Kong Regulators Set to Grant Few Stablecoin Licenses Amid High Demand

Hong Kong regulators have confirmed that only a few stablecoin licenses will be granted despite high demand from major banks and corporations. The Hong Kong Monetary Authority has stressed that strict requirements will apply to ensure proper oversight and reduce risks of misuse. Only firms meeting these requirements will be considered for approval, with regulators receiving 265 complaints related to fraud and other digital asset crimes in the first half of the year.

The Hong Kong Monetary Authority (HKMA) has confirmed that only a few stablecoin licenses will be granted despite high demand from major banks and corporations. The HKMA has stressed that strict requirements will apply to ensure proper oversight and reduce risks of misuse [1].

In the initial phase of its new regulatory framework, the HKMA received 77 expressions of interest from both domestic and international institutions. However, only a few firms will be approved at the outset. According to HKMA Deputy Chief Executive Darryl Chan, the first licenses are expected to be issued in early 2026, underscoring a measured and deliberate approach [1].

Major institutions lining up for the licenses include ICBC (Asia), Bank of China (Hong Kong), HSBC, and Standard Chartered. Standard Chartered, for instance, has formed a joint venture called Anchorpoint Financial in collaboration with HKT and Animoca Brands to establish a foothold in Hong Kong’s emerging regulated stablecoin market [1].

The cautious rollout reflects the regulator’s priority to test the framework with a select group before scaling more broadly. The stringent requirements include verifying the identity of every holder, maintaining strong reserve backing, and ensuring redemption rights at par value. These Know Your Customer (KYC) and anti-money laundering (AML) standards are designed to bolster financial integrity but have sparked debate within the industry [1].

Critics argue that such rigorous identity checks could limit user adoption, particularly for retail customers who favor anonymity or frictionless onboarding. However, policymakers view the cautious rollout as critical for safeguarding financial stability. By starting with a handful of licenses, regulators aim to monitor performance, enforce compliance, and make adjustments before expanding the program [1].

The HKMA’s measured approach is being closely watched worldwide. If successful, the framework may provide a template for balancing innovation with regulation in the digital asset space. For now, the industry’s focus remains on which institutions will secure the first coveted licenses in early 2026, a development that could define the trajectory of Hong Kong’s role in the global stablecoin market [1].

References:
[1] https://financefeeds.com/hong-kong-to-issue-only-a-few-stablecoin-licenses-in-initial-phase/
[2] https://coinpedia.org/news/hong-kong-crypto-regulation-tightens-with-limited-stablecoin-licenses/
[3] https://academic.oup.com/tandt/advance-article/doi/10.1093/tandt/ttaf064/8248855