According to Reuters, Hong Kong’s financial watchdog will grant a first batch of “very few” stablecoin issuer licenses in March.
Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), said he hopes to issue the first batch of stablecoin issuer licenses in March, while addressing a meeting of Hong Kong’s Legislative Council on Monday.
However, he said only a “very small number” would initially be approved.
Stablecoins, a subset of cryptocurrencies with prices pegged to fiat money like the US dollar, are seeing increasing adoption around the world, as major jurisdictions around the world establish regulatory frameworks. Last year, stablecoins moved $35 trillion on the blockchain rails.
Citi, which is currently a $300 billion asset class, projected that stablecoins will become a $1.9 to $4 trillion market. Standard Chartered CEO Bill Winters said Hong Kong’s push toward tokenized money and stablecoins could lay the groundwork for a new era of digital trade deals.
Yue noted that the application review process is nearing completion.
The HKMA chief highlighted that the criteria for stablecoin issuer license approval assessments focused on issues such as risk management, anti-money laundering measures, and stablecoin backing assets.
It also said authorized issuers must comply with local regulations for cross-border activities, adding that mutual recognition agreements with other jurisdictions could be explored in the future.
