Hong Kong is inching closer to the implementation of its new stablecoin regulations. The first licenses under the new regulations are expected to be granted by March 2026. Eddie Yue, the head of the Hong Kong Monetary Authority provided this update.
The cryptocurrency sector got attracted when the Stablecoin Ordinance went into effect in August 2025.
Available information shows that 36 businesses have applied for licenses thus far. Regulators are in the process of carefully evaluating these applications, paying great attention to how corporations manage risks, back their stablecoins with reserves and plan to utilise them in the real world.
Yue has cautioned that due to the stringent requirements, only a limited number of licenses might be granted initially.
According to the Financial Secretary Paul Chan Mo-po, the government wants to support innovation but also make sure the system stays safe and stable.
Many in the market see Hong Kong’s approach as a possible example for other countries. Analysts are of the opinion that clear and firm rules could bring in long-term investors while reducing risks, especially at a time when crypto markets remain highly volatile.
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