Hong Kong Set to Approve First Stablecoin Issuers as HKMA Tightens Rules

TLDR

• Hong Kong nears first stablecoin approvals under strict HKMA oversight
• HKMA prepares limited stablecoin licenses after months of reviews
• Hong Kong shifts stablecoins from sandbox testing to regulation
• First stablecoin issuers await approval as HKMA tightens rules
• HKMA launches controlled stablecoin rollout with few approvals

Hong Kong is preparing to approve its first stablecoin issuers as the HKMA completes final licensing checks. The regulator plans to issue a very small number of approvals in March under its new framework. The move signals the start of supervised activity as the HKMA shifts from consultation to controlled implementation.

HKMA Prepares Final Licensing Decisions

The HKMA is finalizing assessments after months of reviewing operational plans and compliance structures. It aims to authorize only a limited group to ensure controlled entry and stable market conditions. The regulator positions this approach as the foundation for wider oversight.

The HKMA evaluates each applicant for a defined use case and consistent operational readiness. It also checks financial risk controls, reserve models and AML safeguards. It requires each issuer to meet cross-border activity rules set under Hong Kong law.

The licensing regime follows the Stablecoin Ordinance, which took effect in August 2025. The HKMA now treats fiat-referenced stablecoin issuance as a regulated activity requiring formal approval. Applicants must show technical capability and credible execution plans before advancing.

Sandbox Participants and Regulatory Shift

Hong Kong introduced a stablecoin sandbox in 2024 to test readiness. The HKMA included JINGDONG Coinlink Technology Hong Kong Limited and RD InnoTech Limited in the program. It also admitted a consortium involving Standard Chartered Bank Hong Kong, Animoca Brands, and Hong Kong Telecommunications.

The sandbox allowed participants to trial systems under supervision while preparing for licensing requirements. The HKMA stated that the sandbox supported early risk assessments and operational reviews. It helped clarify expectations for reserve management and redemption processes.

The regulatory shift began after Hong Kong passed a bill establishing mandatory rules for stablecoin operations. The HKMA then implemented detailed requirements tied to reserves, reporting, and consumer protections. As a result, the regulator created a structured pathway from testing to approval.

Applications and Expected Market Impact

The HKMA received 36 applications during the first licensing window. It also acknowledged that many early applicants lacked full operational readiness. Therefore, the regulator expects fewer approvals in the initial round despite broad interest.

Several financial groups signaled plans to apply, including entities linked to Ant International. Standard Chartered and Animoca Brands formed Anchorpoint Financial to pursue a license. HSBC and ICBC indicated interest as Hong Kong expanded its regulatory roadmap.

A small first cohort could shape early integrations and partnerships across the region. The HKMA expects licensed entities to influence payment linkages and cross-border interfaces. It also considers potential mutual recognition arrangements with foreign regulators in future planning.

The post Hong Kong Set to Approve First Stablecoin Issuers as HKMA Tightens Rules appeared first on CoinCentral.