Hong Kong Freezes Stablecoin Rollout, Leaving HSBC, Standard Chartered Waiting
Hong Kong has postponed its first batch of stablecoin licenses amid cash laundering issues that might warrant stricter KYC guidelines.
Hong Kong Has Delayed Its Initial Batch Of Stablecoin Licenses
As reported by Wu Blockchain, citing protection from Caixin, Hong Kong has postponed the issuance of its first stablecoin approvals, which means that candidates can be ready for longer earlier than they’ll obtain a license.
Hong Kong first handed its stablecoin invoice in August 2025, making it in order that organizations trying to problem stablecoins within the Chinese metropolis’s jurisdiction might want to purchase approval from the Hong Kong Monetary Authority (HKMA).
Following the rollout of the brand new guidelines, HKMA began receiving purposes from huge names like Standard Chartered in its Joint Venture (JV) and HSBC. The first batch of approvals was anticipated to exit by the top of March, however now April has begun, and no licenses have been handed out in any respect.
“Hong Kong is worried that stablecoins could also be used for cash laundering and will due to this fact implement stricter KYC laws,” famous Wu Blockchain. The delay has thrown a wrench within the plans of 36 candidates. Earlier, mainland Chinese regulators cracked down on the sector, stating that fiat-tied cryptocurrencies don’t qualify as authorized tender, as they fail to fulfill regulatory necessities and pose a danger of getting used for unlawful actions.
Despite the mainland’s stance, nevertheless, Hong Kong nonetheless moved ahead with its stablecoin plans, announcing in February {that a} “very small quantity” of issuer licenses can be handed out in March. With that plan not coming to fruition, it now stays to be seen when the HKMA will be capable of advance town’s stablecoin ambitions.
Elsewhere in Asia, South Korea has additionally seen its stablecoin plans stall, with the Bank of Korea (BoK) arguing for bank-majority stablecoins, whereas the Financial Services Commission (FCS) advocates for laxer guidelines.
Meanwhile, Japan took forward of its neighbors with the launch of its first yen-backed coin final yr. The nation might additionally see its first bank-backed stablecoin this yr, with Shinsei Trust and Banking planning on a Q2 2026 launch.
Over within the United States, President Donald Trump signed into regulation the GENIUS Act final yr, offering a proper framework for stablecoins. Overall, this a part of the cryptocurrency sector has seen important international regulatory momentum over the previous yr, so it’s not shocking to see that its market cap has held up comparatively nicely regardless of the current market downturn.
As the chart from DefiLlama reveals, the market cap of the fiat-tied tokens has largely moved sideways in current months, with its worth at present sitting at $316 billion, a brand new all-time high (ATH).
Bitcoin Price
At the time of writing, Bitcoin is buying and selling round $68,700, down over 4% within the final week.
