Xu Zhengyu: It is expected that part of the stablecoin licenses will be issued early next year, with priority given to prudent reserve management, price stability, and anti-money laundering measures.

On December 19, Hong Kong’s Secretary for Financial Services and the Treasury Christopher Hui said Friday (Dec. 19) at an event that as of the end of September this year, 36 stablecoin license applications from various sectors have been received. Some licenses are expected to be issued early next year, with priority given to robust reserve management, price stability, and anti-money laundering (AML) measures. He noted these measures not only protect investors but also mitigate potential trading frictions by establishing a clear compliance path, helping resolve potential disputes. The Hong Kong Stablecoin Ordinance took effect this past August. A Hong Kong Monetary Authority (HKMA) spokesperson said in October the regulator would review applications and approve them in line with the ordinance and related regulatory requirements. The license application process has a high threshold, with only a handful of licenses expected to be issued in the early stages. Regarding progress on licensing for virtual asset trading and custody service providers, Hui said authorities are working with the Hong Kong Securities and Futures Commission (SFC) to draft detailed rules for the regime, planning to submit them to the Legislative Council for review next year. He emphasized the regulatory framework will cover key virtual asset industry areas, aiming to balance risk management and innovation. Hui reiterated the Hong Kong government is “carefully formulating” various policy measures to standardize rules for Web3 and digital assets, protect investor interests, ensure regulatory clarity and transparency, align with international norms, and create an environment that nurtures innovation while maintaining stability. Previously, the People’s Bank of China (PBOC) stated last month that stablecoins pose risks related to illegal activities, sparking market concerns over whether this will impact Hong Kong’s stablecoin adoption trajectory.