Hong Kong Prepares To Grant Limited Batch Of Stablecoin Licenses In March – Report
Hong Kong monetary authorities have introduced that they may quickly grant the primary, restricted batch of stablecoin supplier licenses because the evaluation course of for functions is sort of accomplished.
HKMA To Grant Limited Stablecoin Licenses Soon
On Monday, the Hong Kong Monetary Authority (HKMA)’s Chief Executive, Eddie Yue, announced that the regulatory company is making ready to grant the primary batch of the extremely anticipated stablecoin licenses subsequent month.
At a Legislative Council assembly, Yue affirmed that the monetary authority expects to subject a “very small quantity” of stablecoin issuer licenses in March, in line with a Reuters report.
In August, the HKMA enacted the Stablecoins Ordinance, which directs any particular person or entity looking for to subject any fiat-referenced stablecoin (FRS) in Hong Kong, or any Hong Kong Dollar (HKD)-denominated token, to acquire a license from the regulator.
Local information shops have reported that greater than 30 corporations have utilized for the license, together with the abroad arm of Chinese mainland monetary know-how large Ant Group and logistics know-how agency Reitar Logtech.
In December, authorized specialists recommended that Hong Kong’s ambitions to turn into a key regulated hub for stablecoins may very well be clouded by the People’s Bank of China’s express crackdown on the sector.
As reported by Bitcoinist, high monetary regulators affirmed that stablecoins don’t qualify as authorized tender within the mainland, which may delay the unique early 2026 schedule and have an effect on the HKMA’s approval of initiatives involving the yuan or mainland Chinese establishments.
Nonetheless, Hong Kong’s Financial Secretary, Paul Chan Mo-po, just lately confirmed the regulators’ plan to grant stablecoin issuers licenses within the first quarter of the yr on the World Economic Forum in Davos.
During a Monday media briefing, HKMA’s Chief Executive reportedly famous that their software evaluation course of is close to its completion. Yue additionally highlighted that the regulator is specializing in use circumstances, danger administration, anti-money laundering (AML) measures, and asset backing.
Moreover, he asserted that licensed issuers should adjust to native laws for cross-border actions, however added that “mutual recognition preparations with different jurisdictions may very well be explored sooner or later.”
Hong Kong Continues Crypto Regulation Efforts
Hong Kong has been actively creating a complete framework to assist the growth of the digital property business as a part of its long-term technique to turn into a world crypto hub.
Notably, monetary authorities have been exploring guidelines to allow insurance coverage corporations to spend money on cryptocurrencies and the infrastructure sector. In addition, the jurisdiction is among the many 76 markets dedicated to implementing the Organisation for Economic Co-operation and Development’s (OECD) new international customary for exchanging tax data associated to crypto property.
The upcoming crypto reporting framework, the Crypto Asset Reporting Framework (CARF), is meant to deliver crypto customers throughout borders below international tax transparency guidelines, thereby stopping tax evasion. Hong Kong is about to start its first cross-border exchanges of crypto reporting knowledge in 2028.
However, the Hong Kong Securities & Futures Professionals Association (HKSFPA) has expressed its considerations in regards to the implementation of the OECD’s CARF and the associated amendments made to Hong Kong’s Common Reporting Standard (CRS).
The group famous that it largely helps the proposals, however urged regulators to ease the record-keeping necessities for dissolved entities and the uncapped per-account penalties for minor technical errors. The Professionals Association warned that these parts of the CARF and CRS amendments may create operational and legal responsibility dangers for market members.
