The Hong Kong Monetary Authority (HKMA) announced it will issue only a limited number of licenses in its upcoming stablecoin regulatory framework, even as 77 applicants, ranging from banks to e-commerce and Web3 startups, have expressed interest.
Among the contenders are heavyweight banks such as ICBC (Asia) and Bank of China (Hong Kong), while HSBC has yet to apply. Lawmakers back HKMA’s cautious stance, stressing lessons from FTX’s collapse. New rules will also extend to offline OTC crypto trades by 2025.
Applicants must submit complete filings by the end of September, but HKMA warned that interest doesn’t guarantee approval. Analysts suggest initial approvals will likely go to big tech firms and major banks, while smaller institutions could face steep capital requirements of up to 1,250%, making participation unviable.
HKMA emphasized investor protection, urging the public not to trust ads for unlicensed stablecoins. The rollout underscores Hong Kong’s ambition to be a tightly regulated digital asset hub.
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