The Chief Executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, recently stated that the regulator has received stablecoin license applications from 36 institutions. The HKMA is currently conducting a prudent review of these submissions and has requested supplementary information from certain applicants to ensure their business models and risk controls meet regulatory standards.
Regulatory Focus on Use Cases and Risk Management
According to Yue, regulatory assessment is centered on stablecoin use cases, risk management frameworks, and the composition of reserve assets. As stablecoins may have a material impact on payment systems and financial stability, their compliance, transparency, and asset security must be fully validated before any licenses are granted.
First Licenses Expected in March with a Conservative Quota
Yue indicated that, provided applicants submit the required materials in a timely manner, the HKMA aims to issue the first batch of stablecoin licenses in March. However, the number of licenses granted in the initial phase will remain limited, reflecting a gradual and cautious approach to avoid potential disruptions to the market and the financial system.
Role of Compliance Technology in Stablecoin Oversight
Throughout stablecoin issuance and circulation, regulators place strong emphasis on on-chain fund flows, reserve asset transparency, and abnormal transaction monitoring. On-chain risk monitoring tools such as Trustformer KYT can support institutions in continuously tracking fund movements and identifying potential compliance risks, strengthening operational oversight while enhancing overall market transparency and credibility.
Regulatory Signals from Hong Kong’s Stablecoin Strategy
Analysts note that Hong Kong’s cautious stance on stablecoin licensing highlights its effort to strike a balance between innovation and risk control. As the regulatory framework takes shape, compliance capabilities are set to become a key threshold for stablecoin projects seeking access to the Hong Kong market.