Hong Kong’s stablecoin laws came into effect on 1 August. By the end of that month 77 companies had expressed interest in launching stablecoins. The Hong Kong Monetary Authority (HKMA) wanted to receive the first applications by the end of September, and 36 companies applied. The timing means that the HKMA can announce the first batch of licenses in early 2026. The HKMA only expects there to be a handful.
The applicants represent a spectrum of organizations ranging from banks, payment providers and securities firms to e-commerce companies. Hong Kong’s initial stablecoin regime is very strict on know your customer (KYC) rules, requiring participants in all stablecoin transactions to be identified. It’s possible that regulators may relax this later. Given full KYC is the norm for banks and payment providers such as Ant Group’s Alipay, this approach may favor these incumbent firms. The authorities have also taken steps to adapt the Basel rules for banks to make it easier for banks to engage with stablecoins.
Standard Chartered was part of a consortium that participated in Hong Kong’s stablecoin sandbox, and said it planned to apply for a stablecoin license via a joint venture. To this end, it invested in Anchorpoint Financial alongside Hong Kong Telecom (HKT) and web3 firm Animoca Brands.
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